Competitive Advantage through Porter’s Generic Strategies: Cost Leadership, Differentiation, and Focus Approaches

Abstract

Competitive advantage is central to business success, allowing firms to outperform rivals by delivering greater value to customers or achieving lower costs. Michael Porter’s Generic Strategies framework—comprising Cost Leadership, Differentiation, and Focus (Cost Focus & Differentiation Focus)—remains one of the most influential models in strategic management. This paper explores the theoretical foundations of Porter’s Generic Strategies, examines their application in diverse industries, and critically evaluates their strengths and limitations. Through a review of case studies and contemporary business practices, the research highlights how organizations can adapt these strategies dynamically in response to globalization, technological disruption, and changing consumer preferences.