Chapter 5

Types of Single-Business Strategy

In this chapter, we apply the general principles of lateral organizational design described in chapter 4 and present examples of product-centric, customer-centric, and real-time organizations. All of these examples are companies that are pursuing single-business strategies using the functional structure. They implement their differentiation variations but with lateral cross-functional processes.

Product-Centric Strategy

The first variation on the single-business strategy is the product-centric model. We use Nike, the US athletic shoe company, as the example. I referred to Nike in chapter 2 on start-ups. Recall that it entered the US running shoe market with high-quality Japanese shoes that were cheaper ...

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