Generic Strategy is a competitive advantage strategy originated in the beginning of 1980s. This concept scheme put forward by Michael Porter includes three different strategies for gaining competitive marketing advantage.
Cost Leadership Strategy
Cost Leadership Strategy aims an organization to be the lowest cost producer/distributer within the industry. This can be achieved by reducing production costs, from sourcing materials to labour costs.
Differentiation Strategy aims in making a product or service different from competitors. To realize this, an organization must stand out of the crowd in terms of product quality, functionality, and support services.
Focus (Niche) Strategy
In Niche strategy, an organization identifies the needs and wants of any market segment and aims to produce products/ services accordingly. This strategy is also known as narrow scope strategy, since it is restricted to a small market area.
An organization that goes with all these competitive strategies can be called as stuck in the middle, as there is no clear business strategy. Such a situation can increase running costs and can create confusion also.