Types of Business-

Level Strategy

- Cindy Clamor Gabayeron, RPh

Hello!
I am Cindy C.
Gabayeron

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Introduction
• Strategy: Increasingly important to
firm’s success and concerned with
making 2 or more alternatives
• Business-Level Strategy: Integrated and
coordinated set of commitments and
actions the firm uses to gain a
competitive advantage by exploiting
core competencies in specific product
markets/industry.
• How we intend to compete in a specific
industry or product market.

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 1.
Cost Leadership Strategy
Cost Leadership is a strategy companies use to
increase efficiencies and reduce production
costs below the industry average or their
closest competitor.

Works well when product/service is

standardized, can have generic goods that are
acceptable to many customers, and can offer
the lowest price.

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 II.
Differentiation Strategy
Value is provided to customers through unique
features and characteristics of an
organization’s products rather than by the
lowest price.

This is done through high quality, features,

high customer service, rapid product
innovation, advanced technological features,
image management, etc.

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 III.
Focused Low Cost
Organizations not only compete on price, but
also select a small amount of segment of the
market to provide goods and services to.

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 IV.
Focused Differentiation
- Strategies that seek to serve the needs of a
particular customer segment.

- Targeting small group of companieswith

differentiated products.

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 V.
Integrated Low
Cost/Differentiation Strategy
- This new strategy may become more
popular as global competition increases.
Firms that use this strategy may see
improvement in their ability to:

• Adaptability to environmental changes

• Learn new skills and technologies
• More effectively leverage core
competencies

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 Thanks!

Any questions?