Configurations of Manufacturing Strategy, Business Strategy, Environment and Structure

By developing strategic configurations which describe commonly used paths to competitive advantage for manufacturers, this paper reconciles some basic concepts from competitive strategy and manufacturing strategy. Four basic strategic configurations are identified: niche differentiator, broad differentiator, cost leader, and lean competitor. The configurations are traced conceptually through competitive strategy, organizational structure, environment, and a strategic framework of manufacturing capabilities and decisions. Examples from the major home appliance industry are provided for each configuration.