Business strategy Essay
Business Level Strategy Business level strategy this refers to a set Of actions a business organization (firm) intends to undertake in order to improve on its competitiveness, service delivery and customer relations It involves identification Of competencies in core areas in order to gain comparative advantage over Other A business level strategy is the key to market possession and penetration to new areas due to low cost Of satisfying customers is the foundation of successful business strategies The firm deeds to choose a competitive advantage, between cost” and “Fermentation”, in the first type they have to compare whether if their prices are lower or higher than the prices in the other firms. And differentiation means “uniqueness”, if they’re somehow different than the others and If not, they have to change that. There are five strategies that the firms can choose to establish and defend their desired strategic position against their competitors. These are divided onto two: Cost strategies and Focus strategies The thirst one Is cost leadership, this Is an integrated set of actions awaken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors. This involves the rivalry
Need essay sample on "Business strategy"? We will write a custom essay sample specifically for you for only $ 13.90/page
It’s an integrated set of actions taken to produce goods or services at an acceptable cost that customers receive as being different in that are important to them, The firm that uses this strategy always concentrates on investing and developing features that differentiate a product in ways to create value for customers. A good thing may be the customized products that are different on many features because the Other firms Colon have that product in their power. The differentiation has a relationship with the next five forces: Rivalry against existing competitors (the customers are loyal), Bargaining power of buyers (an inverse relationship between loyalty,’product price sensitivity), Bargaining PC. Err of suppliers (provide high quality components, driving up firm’s costs), Potential entrants (substantial barriers).