Effective use of the generic business strategies allows the firm to favorably position itself relative to the five forces.

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The generic business strategies (cost leadership, differentiation, and focus) are specifically designed to help firms deal with the competitive forces in their industry, and can be used to create a competitive advantage and strategically position the firm. By using these strategies effectively, a firm can reduce the power of buyers and suppliers, fend off competitive rivalry, and mitigate the threat of new entrants and substitutes.

Effective Use of the Generic Business Strategies Allows the Firm