Porter’s Generic Strategies: Definition with Free Examples

Last updated on January 7, 2022 by

There are many management techniques that anyone can use. With that being said, Porter’s Generic Strategies is one of the most frequently used among these techniques. This strategy is used to visualize the approach of a company or organization towards their competitors. For example, if the competitor provides lower cost for their products/services, then you can use the “Lower Cost” strategy to counter them. If you want more information and examples, then continue reading below.

Porter’s Generic Strategies

What is Porter’s Strategy?

Porter’s Generic Strategy was introduced by Michael Porter in 1980. It’s comprised of three basic strategies, namely the “Cost Leadership Strategy,” “Differentiation Strategy” and “Focus Strategy.” Porter indicated that every company or organization should only pursue one of these strategies or risk wasting company resources in a futile attempt to grow the business fast.

Porters Generic Strategies

As mentioned, this strategy comprises of three individual strategies that have different scopes. To give you a better understanding on each strategies, we will provide some useful information about each strategies below.

  • Cost Leadership Strategy

The first of the Porter’s Generic strategies focuses on the pricing side of business. The targets of the strategy are price conscious customers. It’s an approach where the company provides a quality product that is on-par with the competition for a lower prices.

  • Differentiation Strategy

The next strategy aims to show the difference between your products and its competitors. While there are price conscious customers, there are also those who don’t care about the price as long as they get high-quality products. This is where the Differentiation strategy comes in. You provide the best features that your product possesses. This generic strategy is much more effective if you have something that the other products don’t have.

  • Focus Strategies

The last of the three strategies is called Focus strategies. The scope of this strategy includes specific consumers. This means that it is not highly-recommended for huge companies, but they can employ it on top of either differentiation or low cost strategies. Using Focus strategy, companies can focus more on providing specific products that caters to specific needs of a consumer group. That is why it is highly applicable for smaller business with less competition since it aims to provide unique and exclusive products and services.

Porter’s Generic Strategies Templates by GitMind

Like any other strategic outline, Porter’s generic strategy also has its own model or diagram. Although complicated when explained, it becomes easier to understand with the use of its diagram. It is also a fact that it is an essential tool for presentations with audience within a company. On that note, if you want to get free templates, then try the ones below.

  • Porter’s Generic Strategies Blank Template
porter's generic strategies
Edit this example

Porters generic strategies are very subjective. This means that their contents depends on the user. That is why for starters, it is better to use blank templates first. This will ensure that you won’t apply the wrong strategy for your company. Aside from that, using blank templates such as this one saves an enormous amount of time.

  • Medical Sector Generic Strategy Template
medical generic strategy
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Another way to use this strategy is in the medical field. As the template above show, every medical institution must have a clear goal on how to sell their services. That is why this model is perfect since it gives them a clear view of the things that they can improve to be successful and avoid bankruptcy.

  • Hotel Generic Strategy Template
porters generic strategies
Edit this example

Similar to the previous one, another industry that can use Porter’s generic strategies is the hotel industry. The template above shows the things that can be done in order to provide quality and affordable service to the clients. As we all know, a hotel must provide top-notch services to its customers to avoid bad reviews and keep it going.


Business strategies are crucial for any company who provides services and products to their clientele. By determining the right scope and target market, you will be able to provide what the customers actually need. This means that you will avoid spending time and money in producing unprofitable service and products. With that being said, there is no doubt that Porter’s Generic Strategies will be a helpful tool if used correctly.

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Posted by: on to Tips and Resources. Last updated on January 7, 2022

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  • avatar
    Good introduction! Now I know what is Porter’s Generic Strategy and how to use it. GitMind is such a good infographic tool.