ormation Neiman Marcus Tiffany & Co. Wal-Mart Payless Shoes Cost Strategy Low Cost High Cost Broad Market Competitive Scope Narrow Market Required information Porter's Three Generic Strategies Once top management has determined the relative attractiveness of an industry and decided to enter it, the firm must formulate a strategy for doing so. If our sample company decided to join the airline industry, it could compete as a low-cost, no frills airline or as a luxury airline providing outstanding service and first-class comfort. Both options offer different ways of achieving competitive advantages in a crowded marketplace. The low-cost operator saves of expenses and passes the savings along to customers in the form of low prices. The luxury airline spends on high end service and first-class comforts and passes the costs on to the customer in the form of high prices. Porter has identified three generic business strategies for entering a new market: (1) broad cost leadership. (2) broad differentiation, and (3) focused strategy