General vs. Specific

Saw his quote from a law firm leader with a mid-sized Chicago firm:

We are continually shaping our strategy so that it is more focused rather than less. For a smaller firm, it is life or death. If you are not focused, you are dead. If you are just a generalist, you are only competing on rate. You are not competing on expertise in a few areas where you can have a strong market positions.

What do you think about the statment? And aren't entirely too many small firm lawyers falling prey to this "problem"? I'm fearful that I too often have one foot in that boat...and it's slowly sinking.