CHOOSING A BUSINESS- LEVEL STRATEGY

CHOOSING A BUSINESS- LEVEL STRATEGY

1. Cost Leadership and Differentiation

   • With technological developments, companies have found it easier to obtain the benefits of both strategies
   • A company can also reduce both production and marketing costs if it limits the number of models in the product line

2. Focus Strategy

   • This ability also gives the focuser power over its buyers
   • A focused company is a specialized differentiator or a cost leader
   • Higher costs can also reduce profitability

3. Stuck in the Middle

   • Choosing a business- level strategy successfully means giving serious attention to all elements of the competitive plan
   • Quite commonly, a focuser gets stuck in the middle when it becomes over- confident and starts to act like a broad differentiator

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