Broadly speaking, there are two types of competitive advantage a firm may pursue: low cost or uniqueness
Firms may choose to target a broader or narrower segment of the market. Most markets can be segmented into smaller product markets defined by geography, buyer characteristics (e.g., age, race, income, and gender), and other product line characteristics.
These two dimensions, broad versus narrow and low cost versus unique, define four generic strategies:
1. Broad-scope, low-cost players are referred to as cost leaders
2. Broad-scope, unique players are referred to as differentiated players
3. On the narrow side, we have both focused, low-cost players and differentiated niche players.
4. Some firms pursue generic strategies that cross these boundaries.

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