Generic strategies after two decades: a reconceptualization of competitive strategy

Abstract

Purpose

Current RBV‐grounded research has provided keen and valuable insight into the business‐strategy‐performance relationship. However, the accompanying shift away from the continued refinement of generic business strategy typologies has left a number of research opportunities uncultivated. This paper seeks to demonstrate how the generic strategy approach to strategy formulation can be applied today, especially in the development of parsimonious, prescriptive, and relevant tools for strategic managers.

Design/methodology/approach

A new business strategy typology is developed and grounded in recent developments in the literature and in business practice.

Findings

Building on Porter's low cost‐differentiation framework, this paper integrates research founded on the resource‐based view of the firm, and proposes value and market control as the two prominent overarching factors in business strategies.

Practical implications

The framework proposed in this paper incorporates several research perspectives, but can also be applied by strategic managers when assessing firm and competitor strategies at the business level.

Originality/value

This paper builds on previous work in the field, but proposes an original framework for assessing and evaluating competitive strategies.

Citation

Parnell, J.A. (2006), "Generic strategies after two decades: a reconceptualization of competitive strategy", Management Decision, Vol. 44 No. 8, pp. 1139-1154. https://doi.org/10.1108/00251740610690667