What is a business-level strategy? Why is a business-level strategy important to a firm’s success?

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What is a business-level strategy? Why is a business-level strategy important to a firm’s success?

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What is a business-level strategy? Why is a business-level strategy important to a firm’s success?

Answer & Explanation (1)

Answer
BUSINESS LEVEL STRATEGY refers to a mechanism which incorporates an organisational policies,goals and actions with a focus on how to deliver value to customers while maintaining a competitive advantage. Business level strategy are more focused compared to corporate level strategy it comprises of different types which includes ;

Cost leadership - its aim is to put firm at forefront of the market in terms of pricing through charging lower prices than the competitors and operational cost reduction and increasing the profits.
Differentiation-being different is important in positioning of a company in its market.adding value to products means effectively implies gaining target consumers to the product or service hence affecting capacity in absorbing higher operational costs and investments in future.
Integrated low-cost differentiation -this gives an organisation chances of learning new technology and skills while adopting external environment changes. thus allowing positive compromise and customer satisfaction
Focused differentiation it implies a smaller target customer base most industries focuses in areas of competitors weakness and on products where substitution is difficult.

IMPORTANCE OF BUSINESS LEVEL STRATEGY

It helps in determination of company position as well as direction of profits hence affect efficiency of customer service base.
Business level strategy assist an organisation in achieving a competitive advantage in market place thus increasing the level of competition .when there is a stiff competition in the market it means firms will put more efforts in satisfying the needs of consumers.
There is a provision way of providing value to a customers through exploitation of organisational core competencies.Valuation of customers is a way of retaining them leading to increase in sales and customer reference to new clients
Enables businesses with right efficiencies to focus on cost leadership or offering the lowest prices in market segment in order to bring more customers.thus increasing profits or revenue.
Helps business to work in customer satisfaction because customers are foundation in business level strategy hence better prediction of future needs ,faster actions than competitors and a stronger brand that can weather changes more easily,

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