Different generic strategies can lead to competitive advantage, even in the same indus-try. For example, Rolex and Timex both com-pete in the market for wristwatches, yet they follow different business strategies. Rolex follows a differentiation strategy: It creates a higher value for its watches by making higher-quality timepieces with unique features that last a lifetime and that bestow a perception of prestige and status upon their owners. Cus-tomers are willing to pay a steep premium for these attributes. Timex, in contrast, follows a cost-leadership strategy: It uses lower-cost inputs and efficiently produces a wristwatch of acceptable quality, highlights reliability and accuracy, and prices its timepieces at the low end of the market. The issue is not to compare Rolex and Timex directly—they compete in different market segments of the wristwatch industry. Both can achieve a competitive advantage using diametrically opposed business strategies