Which of the following is NOT a generic strategy mentioned in competitive analysis?

The concept of generic strategies in competitive analysis primarily revolves around how businesses can establish and maintain competitive advantages in their respective markets. The three widely recognized generic strategies are cost leadership, differentiation, and focus.

Cost leadership involves becoming the lowest-cost producer in the industry, which allows a company to either offer lower prices than competitors or maintain average prices while achieving higher margins. Differentiation, on the other hand, focuses on providing unique products or services that offer distinct features valued by customers, justifying a premium price. The focus strategy narrows down the market to target specific segments or niches, emphasizing either cost focus or differentiation focus towards that particular segment.

Market expansion, although a critical aspect of growth strategies, is not classified as a generic strategy in the same manner as the others. It refers more to the tactics employed to increase market share or enter new markets rather than a foundational competitive strategy that dictates how a company competes within its existing market. As a result, it does not fit into the established frameworks that outline competitive advantage.