CHAPTER 4

Business level strategy -is an integrated and coordinated set of commitment and action the firm uses to
gain a competitive advantage by exploiting core compefencies in specific product markets.

Market segments - process used to cluster people with similar needs into individual and identifiable
groups.

Cost leader strategy - integrated set od action taken to produce good or service with features that are
acceptable to customers at the lowest cost , relative to that competitors.

Differentation strategy - integrated of action taken to produce goods and services that custored perceive
as being different ways that are important to them.

focus strategy - integrated set of action taken to produce goods or services that are serve the need of a
patricular competitive srgments.

integrated cost / leardership/ differentation strategy - involves engaging in primary value - chain
activities and support function that allows a firms to simuilaneously pursue low cost and differentiation

Total quality management - managerial process that emphasize an organization commitment to the
customer and to continuos improvement to the customers and to continous improvement of all process
through problem solving approaches based on empowerment of employees.

Strategy - has result in more customers coming to its store , although in earlier stages uts response , it
profit margin were eroding.

REVIEW QUESTION

1.what is a business level strategy ?

- is a integrated and coordinated set of c9mmitment and action the firmbuses to gain and it is choices is
very important because long term performance linked to firm strategy. The complexity of successful
competing the global economy.

2.what is the relationship between a firms customers and its business level strategy in terms of who ,
what , how? why is this relationship important ?
- the relationship between firms customer and business level strategy is firm customer is a blood of
business and also to identifying the need of customer in different culture , geogrhic region and firms
good or services to meet those need , while business level strategy is a action of firm use to gsin
competitive advantage by exploting.

(1) who will be served who is the group of people is the target if this product example : muslim eat only
vegetable , egg , fish , chicken except pork and also the product they eat or use have a halal sign

(2)what need those target customers have will satisfy , the customers musy satisfy the product and
services of company

(3)how those needs will be satisfied how wil customers satisfied in product , services , how company set
of stategy .

the relationship important because strong interactive relationship with customer often provide the
foundation and relationship important to increased customer satisfaction.

3.the difference is cost leadership is action produce good or services with features that are acceptable
customer at lowest cost , differentation strategy is action taken to produce good or services that
customer perceive as being different ways that are important to them , focused cost leadership
designing at lowest price they offered home furnishing that combine good design , function and
acceptable quality with lower prices focused differentation there are many dimension on which firm
can differentation their goods and services , integratef cost leadership / differentation business level
strategy high expectation when purchasing goods and services it seems that the most consumer want
pay a lower prices of product with somewhat highly differentiation feature .

4. The business level strategy use to position to 5 forces is how the strategy of company can use to the
customer , how the company set the good idea for the customer. how they targer the big sales and also
how they product go back the customer

5.A competitors ability to use it core competencies the focuses by serving an even more narrowly ,
Decision by industry wide competitors to focus one customer group specialized need reduction in
difference of need between customer in a narrow market segment and the industry wide market.

CASE DISCUSSION QUESTION :

1. The new CEO has focus strategy they are (1) rebanding (2) entailed is resulting to fail. The new Ceo
has no cost leader strategy because the price listed was the price to paid without futher discount .
Differentiation strategy Jcpenny has branded cloth sucg as Levis , IZOD,LIZ, Claiborne and they have a
home goods

2.The result of the changes of strategy was appeared it to be failed

3 I think because of the wrong desicion and new strategy that CEO implemented

4. the stuck in the middle is Some firms fail to effectively pursue one of the generic strategies. A firm is
said to be stuck in the middle if it does not offer features that are unique enough to convince customers
to buy its offerings, and its prices are too high to compete effectively based on price.

Cost leader strategy - integrated set od action taken to produce good or service with features that are
acceptable to customers at the lowest cost , relative to that competitors.

integrated cost / leardership/ differentation strategy - involves engaging in primary value - chain
activities and support function that allows a firms to simuilaneously pursue low cost and differentiation