Business Level Strategy

4 Levels of Strategy: Types of Strategic Alternatives

4 levels of strategy (1) Corporate level strategy, (2) Business level strategy, (3) Functional level strategy, and (4) Operational level strategy.

Industry What is Industry

Organizations operate within an industry. The macro factors influence the industry and the behavior of competitors in the industry. While conducting the TOE analysis, the organization studies and analyses the industry structure (one of the determinants of industry profitability), competitor behavior, the nature of competition, and the industry life cycle. This analysis is useful to…

Industry Life Cycle

Industry Life Cycle shows the five stages in which industry goes through. 5 stages are; introduction or embryonic, growth, shakeout, maturity, and decline.

Competitive Strategy: Four Types of Competitive Strategy

The competitive strategy consists of the business approaches and initiatives undertaken by a company to attract customers and to deliver superior value to them through fulfilling their expectations as well as to strengthen its market position.

Combination Strategy

Multi-business organizations adopt the combination strategy. Their various businesses may operate under different environmental conditions; have varying industry profitability and life cycles. Organizations must choose strategies that fit the environment, their resources, and their competitive position. It is possible to have different routes to growth within the broad grand strategy or have different strategies for…

How to Formulate Winning Strategies [9 Tips]

Formulating a winning strategy is not an easy task. If not carefully crafted, strategies may turn out to be highly disastrous. That’s why strategy-makers/strategists should follow several good strategy-making principles. Thompson and Strickland suggested 10 principles (they call them commandments) based on the lessons learned from companies’ strategic successes and mistakes. These principles or commandments…

Strategic Action Plan

A comprehensive strategic action plan should ideally contain the company’s vision and mission, strategic objectives, financial objectives, business strategy (i.e., enterprise strategy), functional strategies for various organizational functions, and possible actions to improve the predominancy of the company. Company Vision Company Mission Company Objectives:– Strategic Performance Objectives– Long-Term objectives Functional Strategies– Marketing– Production– Human Resources–…

Hierarchy of Strategy: Corporate, Business, and Functional Strategy

Corporate strategy is too broad to translate into line managers’ actionable plans. Transmission is facilitated by two sets of strategies – business and functional. This means the corporate strategy has subsets in business strategy which defines how an organization will compete, and functional strategy, which defines how the organization’s systems, processes, and functions will be…

Corporate Strategy: Meaning, Implementation, Elements

The corporate strategy aims at improving the attractiveness and performance of the diversified company’s overall business.

Cost Leadership Strategy (Low-Cost Strategy)

Cost leadership strategy is also known as ‘low-cost provider strategy’, or simply ‘low-cost strategy.’ We will use the term low- cost strategy’ in this book. The company that follows this strategy intends to become the overall low-cost provider in the industry in which the company operates its business. A company strategy of selling its products…

Differentiation Strategy: Definition, Types

Definition of Differentiation Strategy Differentiation strategy is concerned with product differentiation. It refers to making a company’s product different from the similar products of the competitors. Although there can be differentiation in services’ too, in this book, we would use the word ‘differentiation’ mainly to mean differentiation of tangible products. As a marketing terminology, differentiation…

Focus Strategy: Meaning, Types of Focus Strategy

Focus strategy concerns itself with the identification of a niche- market and launching a unique product or service in that market. A niche-market is a narrow segment of a total market. A niche can be identified based on certain issues: particular buyer group (such as women, youths, adolescents or aged 50+), geographic uniqueness (such as…

Best Cost Strategy: Definition, Examples

As a concept, Best-Cost means high quality and low price of a product. This term is used to indicate a situation where the company tries to achieve the best (lowest) cost relative to the competitors who offer similar products and simultaneously tries to improve quality. The best-cost strategy is the strategy of increasing the quality…

Fragmented Industry: Strategies For Fragmented Industry

A fragmented industry is related to an industry environment, quite different from the other three types of the industry environment. Thus, it cannot be included in the ‘industry life cycle‘ that includes emerging, maturing, and declining industry environments. Because of its uniqueness, we will discuss here the meaning of fragmented industry including its situational factors…

18 Strategic Options for Industries and Company

Strategic options are the alternative methods for formulating the business strategy for different market positions and setting action plans for success.