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Generic Strategy

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The Palgrave Encyclopedia of Strategic Management

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Abstract

The concept of generic strategy was first defined by Michael Porter in his book Competitive Advantage (1985). A strategy of cost leadership involves seeking the lowest cost structure in the industry; a strategy of differentiation is based on providing a product/service offering that is unique and has higher than average value in the marketplace; and a focus strategy targets a specific segment within an industry. The primary intention is to serve this segment in an exemplary fashion; in so doing the firm may achieve a low-cost advantage, a differentiation advantage or (rarely) both.

This entry was originally published on Palgrave Connect under ISBN 978-1-137-49190-9. The content has not been changed.

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References

  • Barney, J. 1991. Firm resources and sustained competitive advantage. Journal of Management 17: 99–120.

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Author information

Authors and Affiliations

  1. Paul Merage School of Business, Irvine, CA, 92697-3125, USA

    Margarethe F. Wiersema

  2. Berkeley, USA

    Joseph B. Beck

Authors
  1. Margarethe F. Wiersema
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  2. Joseph B. Beck
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Corresponding author

Correspondence to Margarethe F. Wiersema .

Editor information

Editors and Affiliations

  1. Stanford University , Stanford, California, USA

    Mie Augier

  2. Tusher Ctr Intellectual Capital, University of California Tusher Ctr Intellectual Capital, Berkeley, California, USA

    David J. Teece

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© 2016 The Author(s)

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Wiersema, M.F., Beck, J.B. (2016). Generic Strategy. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_484-1

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  • DOI: https://doi.org/10.1057/978-1-349-94848-2_484-1

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  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-94848-2

  • eBook Packages: Springer Reference Business and ManagementReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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