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Business Level Statergy
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Business Level Statergy

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  • 1. INTRODUCTIONBUSINESS LEVEL STRATEGY IS FOCUS ON MEETINGCOMPETITION, PROTECTING MARKETS SHARE AND EARNING PROFIT ATTHE BUSINESS UNIT LEVEL BY PERFORMING ACTIVITIES AND OFFERINGSUPERIOR VALUE TO CUSTOMER.THE AREA INCLUDING LIKEFINANCE, MARKETING, PRODUCTION, HUMAN RESOURCES ,NEWPRODUCT DEVELOPMENT AND RESEARCH ETC.DEFINITIONBUSINESS LEVEL STRATEGIES- IS A ACTIONS TAKEN TO PROVIDEVALUE TO CUSTOMERS AND GAIN A COMPETITIVE ADVANTAGE BYEXPLOITING CORE COMPETENCIES IN SPECIFIC, INDIVIDUAL PRODUCTOR SERVICE MARKETS.
  • 2. 2. DIFFERENTIATION VALUE IS PROVIDED TO CUSTOMERS THROUGH UNIQUE FEATURESAND CHARACTERISTICS OF AN ORGANIZATIONS PRODUCTS RATHERTHAN BY THE LOWEST PRICE.THIS IS DONE THROUGH HIGH QUALITY, FEATURES, HIGH CUSTOMERSERVICE, RAPID PRODUCT INNOVATION, ADVANCED TECHNOLOGICALFEATURES, IMAGE MANAGEMENT, ETC.SOME COMPANIES THAT FOLLOW THIS STRATEGY: ROLEX, INTEL,RALPH LAUREN.
  • 3. 3. FOCUSED LOW COST-ORGANIZATIONS NOT ONLY COMPETE ON PRICE, BUT ALSO SELECT ASMALL SEGMENT OF THE MARKET TO PROVIDE GOODS AND SERVICESTO.FOR EXAMPLE:PHILIPS INDIA LTD LAUNCHED FLAT TV.
  • 4. 4. FOCUSED DIFFERENTIATIONORGANIZATIONS NOT ONLY COMPETE BASED ONDIFFERENTIATION, BUT ALSO SELECT A SMALL SEGMENT OF THEMARKET TO PROVIDE GOODS AND SERVICES.FOCUSED STRATEGIES - STRATEGIES THAT SEEK TO SERVE THENEEDS OF A PARTICULAR CUSTOMER SEGMENTE.G., FEDERAL GOVT.COMPANIES THAT USE FOCUSED STRATEGIES MAY BE ABLE SERVE THESMALLER SEGMENT (E.G. BUSINESS TRAVELERS) BETTER THANCOMPETITORS WHO HAVE A WIDER BASE OF CUSTOMERS.
  • 5. 5. INTEGRATED LOW-COST/DIFFERENTIATION STRATEGYTHIS NEW STRATEGY MAY BECOME MORE POPULAR AS GLOBALCOMPETITION INCREASES. FIRMS THAT USE THIS STRATEGY MAY SEEIMPROVEMENT IN THEIR ABILITY TO.LIKE 1. ADAPTABILITY TO ENVIRONMENTAL CHANGES. 2. LEARN NEW SKILLS AND TECHNOLOGIES . 3.MORE EFFECTIVELY LEVERAGE CORE COMPETENCIESACROSS BUSINESS UNITS AND PRODUCTS LINES WHICH SHOULDENABLE THE FIRM TO PRODUCE PRODUCES WITH DIFFERENTIATEDFEATURES AT LOWER COSTS.