The document discusses different business level strategies including cost leadership and differentiation strategies. It describes Porter's competitive strategies of cost leadership, differentiation, and focus. It also discusses Bowman's Strategy Clock and how companies can pursue various positions along the axes of price/value to implement different business level approaches. Specific Sri Lankan companies are provided as examples to illustrate how they employ strategies like low cost, hybrid cost/differentiation, risky high margins, monopoly pricing, and focused differentiation.

1. Business Level Strategy
Cost Leadership Strategy
The firm winning market share by appealing to cost-conscious or
price- sensitive customers.
Differentiation Strategy
differentiate the product or services in some way in order to
compete successfully.

2. Business Level Strategy
There are two famous ways to formulate these
strategy
• Porter's competitive strategy
• Bowman’s Strategy Clock

3. Cost Leadership Business level Strategy by
Porter‘’s competitive strategy
• Cost Leadership strategy
• Achieve Economical Scale –
Economic Scale Atlas chooty pen
• Reduction of the indirect and
operating cost –by offering higher volume and limiting
Customization features.
Dambro Srilanka - innovex products TV, Refrigerator as
Compared to its international rival such as Haier and Sasmung
• Bulk buying ( purchase of the high
volume of product ) -House of Fashion

4. Cost Leadership Business level Strategy by
Porter‘’s competitive strategy
• Focus strategy :
This Strategy is only possible for the growing industry in the market by
offering at the lowest price and with limited features . The Strategic is
adopted by Sri Lankan Sri Lankan Air Lines for short route flaying from
Sri Lanka and India’s many States, Like Thruchi ,Bombay and Chennai at
the lowest fare within the Facilities as
Compared to other international carriers

5. Cost Leadership Business level Strategy by
Bowman’s
This Strategy is developed to compensate
for the shortcomings of Poter’s strategy based on
Price and perceived value attaining strategic position
• Law price and low value added (Position 1)
In order to remain competitive ,offer the lowest price products like
• “Cheap as chips” – Daintee chocolate by Daintee Limited
• Low price ( Position 2):
• Focusing on Low profit margin but on high volume of product to generate
higher gross profit – SPMC Pharmaceutical corporation of Sri lanka to
produce paracetamol at mass level to offer them at the lower price than
gsk, Panadol

6. Cost Leadership Business level Strategy by
Bowman’s
• Hybrid ( Position 3)
Concerned with low price and in equal sense with differentiation and convince
customers that goods are value added with reasonable price and differentiation.
Example : Damro Furiture : adopt strategy where it positi
ons itself in the market through cost leadership
strategy and differentiation beating Arpico
Furniture.

7. Cost Leadership Business level Strategy by
Bowman’s
• Risky High Margins (Position 6)
To Set higher price with no special value and in result earn a higher
profit but eventually this strategy would be likely to fail
Example : Bandara & Sons Sports Company that applies
this strategy in setting a higher price for its
imported sports and fitness equipment.

8. Cost Leadership Business level Strategy by
Bowman’s
• Monopoly Pricing (Position 7)
Only one business exists to offer products in market and no need to
consider value products offer
Example : Ceylon Tobacco Company

9. Cost Leadership Business level Strategy by
Bowman’s
• Loss of Market Share (Position 8)
To set middle ranged price and standard price with low perceived
value
Example : Micro Cars (PVT) Ltd
setting price at standard rate as compared to
that of competitors but value perceived is little

10. Business Level Strategy
Under Business Level Strategy , Two Concepts are
formulated
1.Cost Strategy
2.Differentiation Strategy

11. Differentiation Strategy under Porter’s
Competitive Strategy Model
• 1. Differentiation Strategy:
To differentiate product/ Services by giving a UNIQUE VALUE from
the same of competitors .
Example: Nestle Sri Lanka known as providing nutrition food specially
for infants such lactogen one of which availability in market is seen
indispensable.

12. Differentiation Strategy under Porter’s
Competitive Strategy Model
2. Focus Strategy:
This Strategy is indented for small companies with less competition but not for Big
Industry. So Small firm aim at small market specially at target market by serving the
group of customer with DISTINCTIVE NEEDS.
Example: Cinnamon Air provides Air Taxi service in Srilanka for the
target customer, Tourist from Air Port to destination place at affordable
Price . (Domestic Airlines)

13. Differentiation Strategy under Bowman’s
Strategic Clock
• Differentiation (Position 4)
This aims to offer customer the HIGHEST LEVEL OF PERCEIVED
VALUE. Here brand and Quality are considered as key roles to
differentiate products
Example:Lankem Ceylon PLC famous for agro chemical
products in Sri Lank for many decades
• Positioned as “Friend of Farmers”

14. Differentiation Strategy under Bowman’s
Strategic Clock
• Focused Differentiation (Position 5)
To aim at selling product at the higher price due to fact that customer
tend to buy the same because of higher perceived value therein .Typically
this strategy is directed toward luxuries brands
HIGH PRICE IS HIGH QUALITY
Example : Rolex Watches

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