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    Strategic Management: Business Level Strategy

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    Yash Shelke
    There are three levels of strategy: corporate level, business level, and functional level. A business level strategy is focused on each business unit or product separately to serve identified customer groups by satisfying their needs. There are three generic business strategies at the business unit level: cost leadership strategy, differentiation strategy, and focus strategy. A cost leadership strategy involves achieving the lowest costs to gain market share. A differentiation strategy creates uniqueness along valued dimensions. And a focus strategy targets a narrow scope by selecting segments to exclusively serve with cost or differentiation focus.

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    Strategic Management: Business Level Strategy

    Uploaded by

    Yash Shelke
    12 views8 pages
    There are three levels of strategy: corporate level, business level, and functional level. A business level strategy is focused on each business unit or product separately to serve identified customer groups by satisfying their needs. There are three generic business strategies at the business unit level: cost leadership strategy, differentiation strategy, and focus strategy. A cost leadership strategy involves achieving the lowest costs to gain market share. A differentiation strategy creates uniqueness along valued dimensions. And a focus strategy targets a narrow scope by selecting segments to exclusively serve with cost or differentiation focus.

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    There are three levels of strategy: corporate level, business level, and functional level. A business level strategy is focused on each business unit or product separately to serve identified customer groups by satisfying their needs. There are three generic business strategies at the business unit level: cost leadership strategy, differentiation strategy, and focus strategy. A cost leadership strategy involves achieving the lowest costs to gain market share. A differentiation strategy creates uniqueness along valued dimensions. And a focus strategy targets a narrow scope by selecting segments to exclusively serve with cost or differentiation focus.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    12 views8 pages

    Strategic Management: Business Level Strategy

    Uploaded by

    Yash Shelke
    There are three levels of strategy: corporate level, business level, and functional level. A business level strategy is focused on each business unit or product separately to serve identified customer groups by satisfying their needs. There are three generic business strategies at the business unit level: cost leadership strategy, differentiation strategy, and focus strategy. A cost leadership strategy involves achieving the lowest costs to gain market share. A differentiation strategy creates uniqueness along valued dimensions. And a focus strategy targets a narrow scope by selecting segments to exclusively serve with cost or differentiation focus.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 8

    Strategic

    management
    Business level strategy
    Business level
    strategies
    • Levels of strategy
    • There could be three levels of strategy :
    • 1. Corporate level strategy
    • 2. Business level strategy
    • 3. Functional level strategy
    Business level strategies

    A business level strategy is the strategy


    opted by a firm for each of its business The bases on which an organization may
    seperately , to serve the identified customer seek to achieve a lasting position in its
    These strategies are employed at business
    group by providing value to this customer environment are known as generic
    unit or product level and emphasizes the
    by satisfaction of their needs . In the strategies . According to Michael porter ,
    competitiveness of the companies product
    process, the manager craft competitive there are three fundamental wats in which
    or services in the specific segment.
    strategies for each business unit to create, firms might achieve sustainable competitive
    sustain and enhance competitive advantage advantage .
    using its competencies.
    There are three
    types of 1. COST LEADERSHIP
    BUSINESS STRATEGY
    2. DIFFERENTIATION
    BUSINESS STRATEGY

    GENERIC
    BUSINESS
    STRATEGIES
    :
    3. FOCUS BUSINESS
    STRATEGY
    1.Cost Leadership Strategy

    A firm which finds and exploits all sources of cost


    advantage and aims at becoming a low cost producer
    in the industry is said to be pursue a sustainable cost
    Leadership Strategy.It implies achieving the lowest The advantage of relative market share of a
    cost in production and marketing to gain a larger substantial order may lead to cost advantage through
    market share compared with compititors over time . If economies of scale , buying power , or cost efficiency
    a firm can achieve and sustain overall cost Leadership which follow increased vume of activity
    then it will be an above average performer in the
    industry provided it can command price at or near the
    industry average .
    2. Differentiation Business
    Strategy
    • A firm seeking to be unique in its industry along some dimensions of its product or service that are
    widely valued by customer is said to have adopted differentiation business Strategy . The
    uniqueness of the product or services may be by way of design , brand image customer service ,
    dealer network or any Such attributes .
    3.Focus strategy
    • When a firm seeks a narrow competitive scope , select a segment
    or a group of segments in the industry and tailors it’s Strategy to
    serving them to the exclusion of other , the strategy is termed as
    focus strategy. It may be a cost focus , if the firm seeks cost
    advantage in its target segment , or it may be differentiation focus ,
    if the form seeks differentiation in its target segment .
    • THE END
    • Thank You

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