The purpose of this study is to examine the effects of competitive strategies on the performance of medium scale manufacturing industries in Bahir Dar town. The research approach applied for this study was quantitative approach, and the design was explanatory. The target population of this study was medium scale manufacturing industry managers. Thus, there were 42 target populations found in manufacturing industries. Purposive sampling technique was used to select wood and metal work manufacturing industries from three major classes of manufacturing industries in Bahir Dar town. Simple random sampling technique was used as a sampling technique to select 38 woods and metal medium scale manufacturing industries from those 42 industries found in Bahir Dar town. The researcher also used comprehensive sampling technique used to select 38 managers under the sample industries. The standardized questionnaires on the effect of competitive strategies on performance of medium scale manufacturing industries were adapted and modified from previous studies. Questionnaires were collected from 35 respondents with the response rate of 92.1. The results of the study indicated that all of the three generic competitive strategies (cost leadership, differentiation, and focus strategies) have positive significant relationships with the performance of medium scale manufacturing industries in Bahir Dar town. As the result, the researcher recommended that medium scale manufacturing industries should embrace and invest in cost leader ship differentiation, and focus strategies.