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Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
Business level strategies
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Business level strategies

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About business level strategies in strategic managment

About business level strategies in strategic managment

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  • New designs introduced every quarter, differentiating strategy offering range of gold, pearl and diamond jwewlery for men and women treating jewlery as fashionable items rather than just investment. Titan Watches: Fast track watches were launched for youth segment, the cool, trendy, funky range for the young and young-at-heart were well differentiated itself as youth watches compare to TATA’s other watches.
  • DELL:- DELL India is a export hub for Asia market, DELL uses Indian talent and raw material (of best quality) for production at Chennai, they get the best mixture of raw material & skills to produce at low cost with best quality.DELL Chennai manufacturing unit cater 60% of their Asian mkt demand.
  • Transcript

    • 1. Business level strategy Analysis
      Presented By…….
      Anil Dhankhar
    • 2. Core
      competencies
      Strategy
      Business-level
      strategy
      Core Competencies and Strategy
      The resources and capabilities that have been
      determined to be a source of competitive advantage
      for a firm over its rivals
      An integrated and coordinated set of actions taken
      to exploit core competencies and gain a competitive
      advantage
      Actions taken to provide value to customers and
      gain a competitive advantage by exploiting core
      competencies in specific, individual product markets
    • 3. Business Level Strategy
      Three Issues:
      Whom it will serve.
      What needs target customers have
      that it will satisfy.
      How those needs will be satisfied
      through implementation of given
      strategy.
    • 4. Five Business-Level Strategies
    • 5. 1. Cost Leadership Strategy
      An integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors with features that are acceptable to customers
      Relatively standardized products
      Features acceptable to many customers
      Lowest competitive price
    • 6.
    • 7. 1. Cost Leadership strategy
      Threats of new entrants.
      Bargaining power of suppliers.
      Bargaining power of buyers.
      Threat of substituted products.
      Rivalry among competing firms.
    • 8. 8
      1. COST LEADERSHIP STRATEGY
      FAILS WHEN?
      • Being overly aggressive in cutting price (revenue erosion of lower price is not offset by gains in sales volume--profits go down, not up).
      • 9. Low cost methods are easily imitated by rivals
      • 10. Becoming too fixated on reducing costs and ignoring
      Buyer interest in additional features
      Declining buyer sensitivity to price
      Changes in how the product is used
      • Technological breakthroughs open up cost reductions for rivals.
    • 9
      2. DIFFERENTIATION STRATEGY
      • Objective
      Incorporate differentiating features that cause buyers to prefer
      firm’s product or service over the brands of rivals.
      • Keys to Success
      Find ways to differentiate that create value for buyers
       Not easily matched or cheaply copied by rivals.
      • Characteristics
      Uniquenessis achieved in ways that:
      • Buyers perceive as valuable
      • 11. Rivals find hard to match or copy
    • 12. 11
      2. DIFFERENTIATION STRATEGY
      FAILS WHEN?
      • Trying to differentiate on a feature buyers do not perceive as lowering their cost or enhancing their well-being
      • 13. Over-differentiating such that product features exceed buyers’ needs
      • 14. Charging a price premium that buyers perceive is too high
      • 15. Failing to signal value
      • 16. Not understanding what buyers want or prefer and differentiating on the “wrong” things
    • Competitive Risks of Differentiation
      The price differential between the differentiator’s product and the cost leader’s product becomes too large
      Differentiation ceases to provide value for which customers are willing to pay
      Experience narrows customers’ perceptions of the value of differentiated features
      Counterfeit goods replicate differentiated features of the firm’s products
    • 17. 13
      3. FOCUS STRATEGY
      • Objective
      Involves concentrated attention on a narrow piece of the total
      market
       Serve niche buyers better than rivals
      • Keys to Success
      Choose a market niche where buyers have distinctive
      preferences, special requirements, or unique needs
      Develop unique capabilities to serve needs of target buyer
      segment
      • Characteristics
      Achieve LOWER COSTSthan rivals in serving the segment
      -- A low-cost strategy
      Offer niche buyers SOMETHING DIFFERENTfrom rivals
      -- A differentiation strategy
    • 18. Focused cost leadership strategy
    • 19. Focused Differentiation Strategy
    • 20. 16
      3. FOCUS STRATEGY
      FAILS WHEN?
      • Competitors find effective ways to match a focuser’s capabilities in serving niche
      • 21. Niche buyers’ preferences shift towards product attributes desired by majority of buyers--the niche becomes part of the overall market
      • 22. Segment becomes so attractive it becomes crowded with rivals, causing segment profits to be splintered
    • 4. Integrated Cost Leadership/ Differentiation Strategy
      A firm that successfully uses an integrated cost leadership/differentiation strategy should be in a better position to:
      Adapt quickly to environmental changes
      Learn new skills and technologies more quickly
      Effectively leverage its core competencies while competing against its rivals
    • 23. Integrated Cost Leadership/ Differentiation Strategy
    • 24. Risks of the Integrated Cost Leadership/ Differentiation Strategy
      Often involves compromises
      Becoming neither the lowest cost nor the most differentiated firm
      Becoming “stuck in the middle”
      Lacking the strong commitment and expertise that accompanies firms following either a cost leadership or a differentiated strategy
    • 25. THANK YOU FOR LISTENING

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