Business-Level Strategies: Cost Leadership, Differentiation, and Focus.

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Business-Level Strategy

is a plan that a company uses to compete with other businesses in the market.

cost leadership, differentiation, Focus

THE THREE MAIN BUSINESS-LEVEL STRATEGIES

COST LEADERSHIP STRATEGY

a business strategy where a company aims to become the lowest-cost producer in its industry while still providing products or services of acceptable quality.

DIFFERENTIATION STRATEGY

a business-level strategy where a company tries to make its product or service different and more valuable compared to what competitors offer.

FOCUS STRATEGY

a business chooses to target a specific group of customers or a specific market instead of trying to serve everyone.

Focus Cost Leadership

Focus Differentiation

Two types of Focus Strategy

Focus Cost Leadership

Target a specific group while offering lower prices.

Focus Differentiation

Target a specific group by offering special or unique products.