LECTURE 4 - THE BUSINESS AND FUNCTIONAL LEVEL
BUSINESS LEVEL STRATEGY : Business level strategies refer to strategies that firms use to build competitive advantage. These strategies include low cost leadership, differentiation and focus strategy. BUSINESS LEVEL STRATEGIES SEEK TO ANSWER THE QUESTIONS : Should the firm compete on the basis of lower cost or should we differentiate our products or services on some basis other than costs such as quality or services? Should we compete head to head with our major competitors for the biggest but most sough-after share of the market, or should we focus on a niche in which we can satisfy a less sought-after but profitable segment of the market? MICHEAL PORTER'S GENERIC STRATEGIES : COST LEADERSHIP STRATEGY : Cost leadership strategy refers to the firm's ability to produce goods and services at a lower cost than its rivals. Firm can achieve cost leadership through cost minimizing along the firm's value chain activities, economies of scale,experience curv...