Business Strategies and Just Timepass, Cheat Sheet of Law

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BUSINESS LEVEL STRATEGIES

Guided by- Asst. professor Rachana Nigam Presentation by- Group no- 5 Anup Yadav Ghritmani Yadav Anmol Shiduja Devesh Sidar

Contents

• What is Business level strategy?
• Benefits of business level strategies.
• Types of business level strategies
• Cost leadership strategy
• Advantage of Cost leadership strategy
• Differentiation strategy
• Strategies to Drive Differentiation strategy
• Advantages of Differentiation strategy
• Focused cost leadership
• Advantages of focused cost leadership
• Focused differentiation
• Advantages of focused differentiation

Benefits of business level strategies.

• Customer satisfaction
• Developing and maintaining a competitive environment.
• Avoiding competitive disadvantages,
• Strong ROI (making profits)

Types of business level strategies

• Cost leadership strategy
• Differentiation strategy
• Focused cost leadership strategy
• Focused differentiation strategy

Advantage of cost leadership strategy

• Low costs enable low prices.
• Cost leaders are more able to withstand price wars.
• Cost leaders may enjoy increased market share.

Differentiation strategy

• A differentiation strategy is an approach business strategy developed by providing customers with something unique, different and distinct from items their competitors may offer in the marketplace. The main objective of implementing a differentiation strategy is to increase competitive advantage.
• For example, Starbucks goes beyond selling coffee by providing a unique coffee experience in their coffeehouses.

Advantages of Differentiation strategy

• Reduced price competition
• Unique products
• Better profit margins
• Better profit margins
• No perceived substitutes

Focused cost leadership strategy

• A focused cost leadership strategy requires competing based on price to target a narrow market. A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market.
• Walmart is a globally recognized focused cost leadership example. They gained a competitive advantage by selling branded items at low costs. They're a cost leadership example that teaches us how to minimize spending, achieve low operational costs, cut outsourcing costs and even help vendors cut costs.

Focused differentiation strategy

• A focused differentiation strategy requires the business to offer unique features to a product or service, and it must fulfill the requirements of a niche or narrow market
• Some firms using a focused differentiation strategy concentrate their efforts on a particular sales channel, such as selling over the internet only. Others target particular demographic groups. One example is Breezes Resorts , a company that caters to couples without children.

Advantages of Focused differentiation

strategy

• High prices can be charged.
• Recreational Equipment Incorporated (REI)
• Firms using a focused strategy often develop great expertise about the good or service being sold.
• Customers may gravitate toward a specialty camping shop in order to learn how to best take advantage of limited vacation time.

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