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The case provides elements to clearly establish what a generic strategy is. Similarly, it shows changes made since 1994, when the first formal business strategy process took place, and how a second process or revision is handled in 2000. Hospital Clinica Biblica (HCB) faces the decision of entering a business that is very different from its operations so far, namely, operating and managing EBAIS, which are public primary health care centers. Their management contract is to be awarded through a public bidding process. This is an interesting situation that lends itself to discuss whether or not this new business is in line with HCB generic differentiation strategy. It also presents the opportunity of noticing there are two kinds of customers in a hospital, patients and physicians, each seeking something different. The former want care and service, whereas the latter look for technology. A Spanish translation is available 'E305-244-1'.