After reading this chapter, you should have a good understanding of:
The central role of competitive advantage in the study of strategic management.
The three generic strategies: overall cost leadership, differentiation, and focus.
How the successful attainment of generic strategies can improve a firm's relative power vis-à-vis the five forces that determine an industry's average profitability.
The pitfalls managers must avoid in striving to attain generic strategies.
How firms can effectively combine the generic strategies of overall cost leadership and differentiation.
