What are Michael Porter's Generic Strategies?

Porter's generic strategies help to establish a business's competitive advantage.  In order to do this Porter outlines two generic strategies.  The first is cost leadership which is the ability to produce products for cheaper than competitors and the second is differentiation which is the ability to produce a better product than the competitors.  You must also look at the market size.  Some products are sold in the mass market while some are niche market.  An example of a mass market product would be a tootbrush as everybody needs one.  The companies that manufacture toothbrushes can therefore gain an advantage through either cost leadership (the cheap toothbrushes you buy for a few pounds) or differentiation (these toothbrushes are usually the expensive electric ones you see on the TV).  Niche markets are markets that have few customers and therefore few suppliers.  An example is Rolls Royce who produce engines for planes.