Quantum phase transitions in matter are characterized by qualitative changes in some correlation functions of the system, which are ultimately related to entanglement. In this work, we study the second-order quantum phase transitions present in models of relevance to condensed-matter physics by exploiting the notion of generalized entanglement [Barnum et al., Phys. Rev. A 68, 032308 (2003)]. In particular, we focus on the illustrative case of a one-dimensional spin-1/2 Ising model in the presence of a transverse magnetic field. Our approach leads to tools useful for distinguishing between the ordered and disordered phases in the case of broken-symmetry quantum phase transitions. Possible extensions to the study of other kinds of phase transitions as well as of the relationship between generalized entanglement and computational efficiency are also discussed.