788, Module 4a, Bus-Level Strategy , Sp11 (1)

788, Module 4a, Bus-Level Strategy , Sp11 (1) - Module 4a...

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Module 4a Business-Level Strategy
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Introduction There are three ways of making above average profits in business: arbitrage , low-cost and differentiation . The latter two are the generic business-level strategies. A best-cost strategy, a/k/a integrated low-cost and differentiation, employs a balance of low-cost and differentiation. The source of profitability is scarcity. Managers can have more impact on the bottom line with their business-level strategy than any other action, except luck.
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Business-level Strategy defined: An integrated and coordinated set of actions taken to exploit competencies that will enable the firm to gain a competitive advantage by providing value to customers in specific product markets.
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Generic Business-Level Strategies Low-cost strategy provides goods or services acceptable to customers that are produced at a cost lower than that of competitors Differentiation strategy provides goods or services with features customers perceive to be of superior value than competitors
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Generic Business-Level Strategies &
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