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Business-level strategy

Is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.

There are two types of target markets

Narrow market

Firms intend to serve the needs of a narrow customer group.

Broad market

Use their capabilities to create value for customers on an industry-wide basis.

The purpose of a business-level strategy is to create differences between the firm’s position and those of its competitors.

Focused Low-Cost

They focus on one niche or unique feature and work to offer said niche or feature at the lowest cost possible to their targeted market segment.

Focused Differentiation

Greater capacity for the business to serve their customers with maximum efficiency.

Integrated Low-Cost Differentiation

Gives companies the advantage of learning new technologies and skills quickly while adapting to outside, environmental changes.

Differentiation

This is fundamental in how a business can position itself as an industry-leader in its market. This supports quality over cost.

Cost Leadership

Aims to put your business at the forefront of the market in terms of pricing.