Question

Explain the main business level strategies that a firm can use in developing its strategy. Provide an example of each.

Answer 1

The Business level strategies which an enterprise might use, namely :-

1) Product Differentiation -

Product differentiation is the art of providing products which are different or unique from the competitors product. Diffeerentiation can also be achieved by providing high quality products or high quality of services to the customers.

For example- While purchasing mobile phones a customer may choose I-phone over android because of the status symbol attached to it.

2) Cost leadership -

Cost leadership is concerned with providing quality goods to the customers at a lower price than what is being offered by the competitors. Cost leadership should not compromise with the quality of product.

For example - One plus smartphone brand is providing great quality of mobile phones with attractive features at a much lower price than what is being offered by the competitors.

3) Focused Low cost -

This strategy is somewhat similar to Cost leadership strategy. Sometimes organisations may select a small segment of market to provide goods and services at low cost.

For example- while applying for tenders of government organisations, a company may quote low cost just to get the contract.

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