15. Generic Strategy
Introduction
The Generic strategy framework (Porter, 1980) comprises two alternatives each with two alternative
scopes. Unfortunately Porter confuses this by asserting that Focus – i.e. Narrow Scope – is the THIRD
generic strategy.
Clearly, however, as it depends on the former two major dimensions it cannot stand alone as a strategy
itself. It is better to use the model as a four-cell framework:
Definition
There are in essence only two generic strategies, Differentiation and Low-Cost Leadership each with a
dimension of Focus – broad or narrow.