salam everyone ^^,
today i would like to share with all of you about level strategies. there has three level strategies which is business level strategies, functional level strategies and corporate level strategies. my pleasure to share with you about business level strategies first.
Business level strategies refer to strategies that firm use
to build competitive advantage. These
strategies include low cost leadership, differentiation and focus strategy.
There has three establish by firm to defend their position
against competitors ;
First :
Cost leadership strategies refer to the firm’s ability to
produce goods and services at a lower cost than its rivals. Firm can achieve cost leadership through cost minimizing
along the firm’s value chain activities, economies of scale , experience curve
effects, efficient scale facilities, waste reduction and producing high volumes
of standardized products. for example ; Dell (computer), Air Asia (air travel), Mydin (grocery stores)
Second :
Differentiation strategy is a business level strategy based
on providing buyers with a unique or special product or service that
distinguishes the firm’s products or service s from its competitors. firms can be differentiate themselves through product features, product customization or the level of service and support provided to the customers. a differentiation strategy can fail when the firm can no longer sustain its differentiation with product innovations or service enhancement. for example ; Apple in computer technology, Volvo in car safety and Nokia in innovation.
Third :
Focus strategy refers to the business level strategy based
on providing products or services to a specific niche within an industry. focus strategies can occur in two forms : cost-based focus and differentiation- based focus. example of specific market segments that can be targeted by a focus strategy include : (a) paricular consumer groups (babies,pregnant mother) , (b) different segment of a product line ( people who prefer organic food) , (c) different geographic or regional markets.
that all from me,
i will see you in next entry.
No comments:
Post a Comment