Business-Level Strategy: How to Compete for Advantage

6 important questions on Business-Level Strategy: How to Compete for Advantage

What is the Business-Level Strategy?

It details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.

ANSWERS: “How should we compete?

What determines a Competitive Advantage?

Both Industry Effects and Firm Effects

(They are interdependent)
=onderling van elkaar afhankelijk

What is the Differentiation Strategy?

It seeks to create higher value for customers than competitors create by delivering products/services with unique features while keeping the costs at the same/similar levels.
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What is the Cost-Leadership Strategy?

It seeks to create the same/similar value for customers by delivering products/services at a lower cost than competitors, enabling the firm to offer lower prices to customers.

What is the Scope of Competition?

The size of the market in which a firm chooses to compete. (narrow or broad)

What is the Focused Cost-Leadership Strategy?

The same as the cost-leadership strategy, except with a narrow focus on a niche market

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