in this article, we will review what business-level strategy is, the types of business-level strategies, examples and how to implement a business-level strategy from the corporate level downward. company executives look at ways to improve and expand the company. cost leadership strategy forces a business to look at the costs that are related to the manufacturing process, shipping and delivery of a product to a customer that will affect the price point at which they can sell their product to still return a profit. to implement a successful business-level strategy that will benefit your business your goals must be identified and carried out in each area of your company.
you are looking to expand your business into the office furniture market and sell chairs, desks and cubicles. once you have established your target market, identified competitor pricing and ideal customer-base for that market, you can begin researching the needs of your customer base. example: your office supply company researches industry trends to discover which office furniture products are the most popular. example: at the individual department levels of your office supply company each department is assigned specific goals and quotas to be met. the marketing team is responsible for creating campaigns to bring awareness to this new edition of your offerings.
it will also affect the efficiency of how you are able to serve your customer base. in essence, the cost leadership strategy aims to put your business at the forefront of the market in terms of pricing. you will also need to have substantial capital to invest in efficient logistics, materials, labor, and the right technology. effectively implementing your differentiation strategy means that you’ve effectively gained your target customers’ trust and they’re willingness to pay a premium price.
the upside with this strategy is a greater capacity for the business to serve their customers with maximum efficiency. much like the focused differentiation strategy, the focused low-cost strategy also aims to corner a small segment of the market. to figure out which strategy will work best for your business entirely depends on your core competencies, your corner of the market, and the strengths and weaknesses of your competitors. according to michael porter, the father of business level strategies, the things you need to do to make each type of strategy work appeals to different kinds of people.
examples of business-level strategies 1. cost leadership strategy 2. low-cost strategy 3. differentiation strategy 4. integrated strategy. defining business level strategies #1 cost leadership #2 differentiation #3 integrated low-cost differentiation #4 focused differentiation. amazon is an example of a business using a cost leadership strategy. it focuses on attracting a large number of customers. it keeps prices low by using its vast, functional level strategy examples, functional level strategy examples, business level strategy examples pdf, differentiation business-level strategy, business level strategy pdf.
five types of business-level strategies offering the best price for products differentiation of the product or brand focused low cost strategy focused supermarkets are a key example of this kind of approach, constantly looking for in the simplest meaning, business level strategy can be understood as an elaborate outline that incorporates the strategic planning and policies, business level strategy and corporate level strategy, business-level strategy ppt. what are the 5 business level strategies? what are the 3 business level strategies? what’s a business level strategy? what are the 4 business strategies? 3 examples of business level strategylowering production costs.streamlining shipping.improving inventory control.
When you try to get related information on business level strategy examples, you may look for related areas. functional level strategy examples, business level strategy examples pdf, differentiation business-level strategy, business level strategy pdf, business level strategy and corporate level strategy, business-level strategy ppt.