About business level strategies in strategic managment

1. Business level strategy Analysis Presented By……. Anil Dhankhar

2. Core competencies Strategy Business-level strategy Core Competencies and Strategy The resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals An integrated and coordinated set of actions taken to exploit core competencies and gain a competitive advantage Actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets

3. Business Level Strategy Three Issues: Whom it will serve. What needs target customers have that it will satisfy. How those needs will be satisfied through implementation of given strategy.

4. Five Business-Level Strategies

5. 1. Cost Leadership Strategy An integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors with features that are acceptable to customers Relatively standardized products Features acceptable to many customers Lowest competitive price

7. 1. Cost Leadership strategy Threats of new entrants. Bargaining power of suppliers. Bargaining power of buyers. Threat of substituted products. Rivalry among competing firms.

9. Low cost methods are easily imitated by rivals

13. Over-differentiating such that product features exceed buyers’ needs

14. Charging a price premium that buyers perceive is too high

15. Failing to signal value

18. Focused cost leadership strategy

19. Focused Differentiation Strategy

21. Niche buyers’ preferences shift towards product attributes desired by majority of buyers--the niche becomes part of the overall market

23. Integrated Cost Leadership/ Differentiation Strategy

24. Risks of the Integrated Cost Leadership/ Differentiation Strategy Often involves compromises Becoming neither the lowest cost nor the most differentiated firm Becoming “stuck in the middle” Lacking the strong commitment and expertise that accompanies firms following either a cost leadership or a differentiated strategy

25. THANK YOU FOR LISTENING