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SAS Institute’s Generic & Business Strategies


The report by Stanford University shows that SAS uses a differentiation strategy. The differentiation strategy is focused on the development of a product and service that offers exclusive attributes that are needed by a customer. The company tries to provide a high level of service, and its customer-driven development process is key to the organization’s success. Moreover, its business strategy is a complete match with its human resource policies. As a differentiation firm, the company focuses on a long-term vision and tries to encourage teamwork and innovation.

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SAS’s generic strategy

SAS has four principles driving its day-to-day decisions and behaviors. The first principle is treating everyone fairly and equally. It takes roots from deep within the company’s history when only four people started the business. Such a mentality helps to create a positive environment and reach efficient and effective outcomes. The second principle is a focus on intrinsic motivation and trust. Barrett Joyner, Vice President of North American sales and marketing, says, “The emphasis is on coaching and mentoring rather than monitoring and controlling,” and this is a great example of trust and teamwork. While other companies worry about short-term gains, SAS’s third principle is to take a long-term view of all issues. The fourth principle is bottom-up decision-making, and this is mind-blowing. Goodnight’s SAS is not like most companies that focus only on profit; he has no specific financial goal and wants “just to take in more money than we spend.”

SAS’s human resource policies and business strategy

SAS’s business strategy is similar to its human resources strategy. With an open-minded approach to innovations, the organization strives to satisfy every client. It does not force its employees to work extra hours, so the environment is positive. As a result, SAS attracts smart and creative people striving to improve the company. Moreover, the organization provides workers with significant benefits, such as bonuses, health plans, and training. A great example of the impact of such policies is that some employees have decided to leave Oracle to work for SAS. The mentioned benefits support the differentiation strategy, as they enhance employees’ loyalty and dedication to SAS. In addition, they help workers to understand customers’ needs better, which is significant for the organization’s long-term goals.

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