Generic Strategy

Generic strategy is the process by which we gain the competitive advantage in most simplify
way is called generic strategy. This strategy formulates the strategy for purpose of gaining
competitive advantage. For competing best in the market, organization set some strategy based on
core idea on long term basis. The core idea is called generic strategy. Porter's generic strategies
describe how a company can pursue their competitive advantage across its chosen market
scope. An organization can set some strategy and gain competitive advantage over their rivals.
With these advantages organization increased their profitability and leaded the market. There
are three types generic strategy:

a) Low-Cost Leadership

b) Differentiation

c) Focus

With these three types of strategy, organization gains the competitive advantages against its
competitors.

Low-Cost Leadership

By setting up low-cost strategy an organization can gain competitive advantage at cost

reduction and efficiencies over its rival. The main purpose of this strategy is increasing the
quality not the quantity. They maximize economies of scale by increasing production so that the
cost per unit can be reduced, implement cost-cutting technologies, stress reductions in
overhead and in administrative expenses, and use volume sales techniques to propel
themselves up the learning curve. A low-cost leader is able to use its cost advantage to charge
lower prices or to enjoy higher profit margins.

Differentiation

By pursuing Differentiation Strategy, organization tries to indicate to become unique by offering

their products and service in the industry which create additional value to customer. The main
purpose of this strategy is to ensure the quality not quantity. Here quantity doesn’t matter.
Strategies dependent on differentiation are designed to appeal to customers with a special
sensitivity for a particular product attribute. By stressing the attribute above other product
qualities, the firm attempts to build customer loyalty. Often such loyalty translates into a firm’s
ability to charge a premium price for its product The product attribute also can be the
marketing channels through which it is delivered, its image for excellence, the features it
includes, and its service network.
Focus

When an organization set a strategy for a specific market and specific customer they implement
the focusing strategy. This strategy applied by the organization to capture one certain market
and certain customer. A focus strategy, whether anchored in a low-cost base or a
differentiation base, attempts to attend to the needs of a particular market segment. A firm
pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of
customers with special financing, inventory, or servicing problems; or to tailor the product to
the somewhat unique demands of the small- to medium-sized customer. The focusing firms
profit from their willingness to serve otherwise ignored or underappreciated customer
segments

Generic Strategies used by ROBI

Robi does not implement a particular generic strategy rather it follows more than one generic
strategy simultaneously. After merging with Airtel they follow dual-brand strategy. Robi
targeted the market and customer who are added more value to their revenue where else
Airtel more focused on youth based market and low-cost leadership. Robi targeted the digital
customer by providing better 4G network.