Question

Briefly describe the three generic business - level strategies , providing an example of each

Answer 1

Three generic business level strategies are -

• Cost leadership strategy - In this strategy, businesses try to reduce the cost of Products and services in order to increase the profits and with thid profit they are able to invest in other parts of the business. It is to be keep in mind that this strategy is for long term so if as a business owner you loose you focus on it , then cost will creep back . Example of cost leadership strategy - McDonalds
• Differentiation strategy - In this strategy, businesses focus on the differentiating the product from it's competitors which helps them to show their products to consumer in a unique. Example of differentiation strategy is - Apple Inc
• Cost focus strategy - In this strategy, businesses focus on niche market which means either by industry or by geography and then it becomes expert in delivering for that industry. Example of cost focus strategy is Uber