Advantages of Business-Level Strategy
Advantage
In business-level strategy, the customer is the foundation. To successfully implement any strategy, the business must understand the customer, including information about gender, age, values, consumption patterns and geography. Anticipating the needs of the customer and answering these needs can give a business an advantage over the competition. Businesses can work toward satisfying customers by creating strategies that have value to the organization and the customer. A successful strategy helps give the business intimate knowledge about customers and competitors. This knowledge can lead to greater revenue for the business.
1.Cost Leadership
Businesses can find it difficult to set the price of a product to produce an above-average return while remaining competitive. Cost leadership is a business-level strategy that requires the combined efforts of suppliers, designers, research and development, production and distribution. If a business cannot successfully implement cost leadership, the business should also consider differentiating the product by providing associated services not offered by competitors.
2.Differentiation
By entering specialized markets, a business can often price a product higher by meeting specialized needs of the market. A business can achieve success with a differentiation strategy by entering a small segment of the market and providing goods and services customers see as valuable. This small segment usually requires high-quality products, innovation, technological features and superior customer service.
Reference:https://smallbusiness.chron.com/advantages-disadvantages-businesslevel-strategy-19209.html
