Business level strategy refers to the plans and actions that a company takes to achieve a competitive advantage in its particular market or industry. It involves making choices about the types of products or services that the company will offer, the target customer base, and the marketing and distribution channels that will be used to reach those customers. In order to be successful, a company's business level strategy must be aligned with its overall corporate strategy and must take into account the company's resources and capabilities, as well as the competitive landscape in which it operates.
There are several different types of business level strategies that companies can use to achieve a competitive advantage. One common strategy is cost leadership, which involves creating a high-volume, low-cost production model that allows the company to offer its products or services at a lower price than its competitors. This strategy is often used by companies that operate in highly competitive markets and must find ways to differentiate themselves through price in order to attract customers.
Another business level strategy is differentiation, which involves creating a unique value proposition that sets the company's products or services apart from those of its competitors. This could be achieved through the use of innovative technology, superior quality, or exceptional customer service, for example. Differentiation strategies are often used by companies that operate in niche markets or that have a unique selling point that they can use to stand out from the competition.
Another business level strategy is focused low cost, which involves targeting a specific segment of the market and offering products or services at a lower price to that specific segment. This strategy is often used by companies that have a particular advantage in serving a particular segment, such as a company that specializes in serving small businesses, for example.
In order to implement a successful business level strategy, a company must first conduct a thorough analysis of its internal resources and capabilities, as well as the competitive landscape in which it operates. This will allow the company to identify the most appropriate strategy for its particular situation and to develop a plan for implementing that strategy. The company must also be prepared to adapt and adjust its strategy as market conditions change, in order to remain competitive.
In conclusion, business level strategy is a crucial aspect of a company's overall corporate strategy, and involves making choices about the types of products or services that the company will offer, the target customer base, and the marketing and distribution channels that will be used to reach those customers. Successful implementation of a business level strategy requires a thorough analysis of the company's resources and capabilities, as well as the competitive landscape, and the ability to adapt and adjust as market conditions change.
