This is a conceptual paper that evaluated competitive strategies and firm performance through a review of existing literature. The Resource – Based view, the capability – based view and the Market – Based view were analyzed as the theoretical perspectives of the study. The porter’s generic strategies and the value discipline model were used to describe the competitive strategy options available to business firms as well as the qualitative and quantitative measures of firm performance. The empirical studies showed inconsistencies in the research findings for which knowledge gaps were identified. The study had proposed a conceptual model with two conceptual hypotheses. The paper concluded that though the generic strategies have a positive effect on the performance of business firms and that the individual effect of each of the generic strategies on firm performance varies from one industry to another. It was recommended that further studies be done on the effect of hybrid strategies on firm performance and that firm characteristics as a moderating variable should be studied in the competitive strategies - firm performance relationship. The authors also recommended that further studies should analyze the effect of the value discipline model since most authors seemed to prefer the generic strategies of power.