The strategy involves identifying the company's long-term goals and finding ways to achieve those goals. The strategy determines the long-term direction of the organization. A company has a competitive advantage when it is able to create more economic value than its rivals, and the foundation of any company strategy is to build and maintain a competitive advantage. Sources of competitive advantage can be found in the environment of the company as well as in the company itself, and the result of achieving a competitive advantage is regularly manifested through superior value creation. By applying Porter's generic business strategies, a company can gain a competitive advantage over its competitors in three ways: 1. by differentiation, 2. by low costs, and 3. by focusing. These are three strategies, each of which has and offers a different path to achieving a competitive advantage. In short, cost leadership and differentiation strategies seek to find a competitive advantage in a wide range of industry segments, while focusing strategies focus on competitive advantage within a narrow segment. It is the decision to choose one of the generic business strategies that are considered a very important decision since the choice of the same effects and determine the rest of the strategic actions that a company will decide on. Competitive advantage is not a static phenomenon, due to changes in technology, labor market, consumers, and competitors as well as a number of other factors, the corporate advantage of the company is changing. Analysis and constant improvement and timely finding of adequate solutions are important.