Question

How does differentiation, cost leadership, and integration support a forward-looking business strategy?

Answer 1

These three strategies are top level business strategies which helps business to look forward and help them to achieve competitive advantage which should be the forward aim of every business.

Differtiation strategy help business to gain competitive advantage by having unique factor which is not present in its rival business companies so due to this strategy business move forward and have profitability in business. For example Starbucks and apple have competitive advantage and moving forward in business due to this strategy.

Low cost or cost leadership strategy helps business to be profitable by lowering business cost and gain competitive advantage like Walmart and Amazon has competitive advantage due to low cost business leaders.

Integration strategy is control strategy and allow a firm to gain control over distributors, suppliers, and/or competitors.

For example Netflix has it's own production and distribution department control to make business more forwaed looking and profitable.

In short these strategies are focused on making future of business more profitable and sustainable.