Competitors can quickly copy the operational effective company using benchmarking and other tools thus diminishing the advantage of operational effectiveness. Michael porter defines strategy as "the creation of a unique and valuable position involving a different set of activities. "A company can claim that it has a strategy when its activities differ from those of its rivals or performs similar activities in different ways. Porter notes that competing firms directing the same strategy to the same target market constitute a strategic group. The firm that carries out the strategy best will make the most profits. As a result, Porter proposed three generic strategies that provide a good starting point for strategic thinking.

Describe the three generic strategies that will support a firm achieve the most profits in today's competitive marketplace.