An empirical investigation of the relative emphasis placed by high‐tech firms on various sources of competitive advantage. Five strategies are identified. The most widely used, called “balanced”, employs a number of different sources of competitive advantage. One strategy is based heavily on product quality, another purely on technological performance. A further strategy, “mass marketing”, places emphasis on heavy promotion and wide distribution. The final strategy is a “value for money” position placing emphasis on both competitive pricing and technical performance. Also shows that choice of strategy depends on product type, market type, market sector and the rate at which products are replaced.