Porter’s generic matrix is a means by which a firm can identify a corporate strategy and fully focus all resources in one particular area. It avoids being “stuck in the middle” and creates a clear strategy for a firm such as Centre Parcs to achieve. There are four sections, cost leadership, cost focus, differentiation leadership and differentiation focus. Centre Parcs are mainly focused on customer needs and divert all their energy into giving them the best possible experience, which is why they can charge a high price for a stay at one of their villages. They are aimed very much on family so therefore have a huge potential market. One possible strategy CPs could take is cost leadership. The aim with this strategy is to become the lowest cost producer in the industry. If CPs went down this route they would experience much lower unit costs, which would enable them to be able to exploit economies of scale, also they will have a larger market share making them extremely competitive. This will therefore make CPs more efficient and will help them dominate their market, as one of their aims is to be the biggest domestic holiday resort. They will then have a large customer base that will help pay off their debt. Another option is differentiation focus. This is a strategy where CPs would concentrate on a particular niche market and develop either low-cost or well-specified products/service for the market. If they go down this route they would avoid confrontation with competitors as CPs would be the only specialized service provider in their particular niche. CPs would have to develop a niche position with a service for otherwise unsatisfied customers to make it work. If they were the only business in that niche and dominated it then they will be highly profitable which will help towards the mountains of debt CPs have. Differentiation leadership is a strategy where a business creates an advantage over competitors by providing greater b