Generic Strategies and Business Performance: an Empirical Study of the Screw Machine Products Industry

SUMMARY Select businesses in industry may attempt to compete through distinct strategies. But some may be successful in adopting distinct strategic profiles while others may not prove successful. In this study it was expected that six different groups of businesses might be present in the empirical exploration – those competing successfully with the low cost strategy and those competing unsuccessfully with this strategy; those competing successfully with the differentiation strategy and those competing unsuccessfully with this strategy; and those competing successfully with low cost and differentiation strategies and those competing unsuccessfully with these strategies. The results of the investigation portray the presence of three strategic profiles. They are unsuccessful low cost businesses with the lowest performance, unsuccessful differentiated businesses with the second lowest performance, and successful businesses with combination strategies with the highest performance.