Generic Strategies and Firm’s Performance in the Banking Sector

Abstract

The main goal of the current study was to establish the relationship that exists between generic strategies and firm’s performance in the banking sector. The study reviewed literature on generic strategies employ by banks in Ghana in line with Porter’s typology. The researcher employed descriptive survey design and purely quantitative approach with data collected from 200 respondents. The outcome of the study revealed that cost leadership is the most outstanding competitive strategy, whilst overall differentiation and low cost strategies are most commonly used in the banking industry. The study concluded that generic strategies are the most influential competitive strategies for performance of banking firms in Ghana. The author recommended that all staff should remain focus in designing services that make them unique from others to achieve the overall differentiation strategy and make all staff be committed to cost control in all areas to achieve low cost strategy.

Keywords: Generic Strategies, Strategies, Cost Leadership, Focus and Differentiation