Business Level Competitive Strategies

The basic purpose of business-level strategy is to provide higher value to consumers while also gaining a competitive advantage. Cost leadership, differentiation, focused low cost, focused differentiation, and integrated low cost differentiation are five different company level strategies.

The term "cost leadership" is sometimes used to describe a wide low-cost strategy. The term "cost leadership" refers to a company is committed to provide the best price to its consumers. The term "best pricing" refers to a company's commitment to provide the lowest feasible price to its clients. There are businesses that compete to provide clients with the best possible cheap price on practically everything. The method works well in marketplaces when products and services are almost identical and that there is no way to provide variation. The biggest disadvantage of the cost leadership strategy is that buyers may be hesitant to purchase the items because they believe the quality would undergo as a result of the low price. Walmart strategy is efficient and large-scale, allowing them to acquire the lowest pricing on items and offer them at lower prices than other vendors.

Differentiation is the next technique. Broad differentiation approach is another name for it. Such businesses will offer something different that no one else their competitors can do, allowing them to charge far higher prices than their competitors' products. Superior functional features of the items must be used to differentiate the products. On superior

design, branding, and customer service, businesses can charge a premium. In marketplaces where customers' needs and uses of products and services are varied then differentiation is beneficial. The big disadvantage of a differentiation strategy is that it involves a large investment in research and development in order to generate a differentiation product whose pricing could be out of budget for customers. Apple is a company that effectively uses a differentiation strategy to sell its laptops to a large market when it has unique design and engineering that allows it to appear out from the industry and charge a premium price while still competing.

There is the focused low-cost strategy. You will offer a lesser price here, but you will not attract to all in the market. You've narrowed your concentration to a small segment. There is still a need for low-priced items for a certain sector of customers that focus cost approach works well. The biggest drawback of this method is that if you're targeting a certain demographic, sales may not be as high as you'd like. Checkers is a drive-in only fast-food business established in the United States. It saves money over its competitors since it doesn't provide seating for consumers and its facilities are less costly to build. Checkers is a business that focuses to the lower part of the market. Despite this, Checkers is able to maintain strong profits due to its very little overheads.

Then the focused differentiation. You will be unique among rivals, and no one else will be able to duplicate your product or service. You will also charge a premium price, but only for a very tiny niche. When no one else in the market is trying to target a certain market group in a unique way, focus differentiation is successful. The major weakness of this method is the changing in client preferences. It's pointless if the clients for whom it's produced later decide they don't like the items. Rolls-Royce cars have a focused differentiating strategy. Since they are premium priced and focus on a small fraction of the global automotive market, their cars are identified with luxury, standard, and engineering excellence.

The integrated low-cost differentiation method would be the last approach. It combines the best of both environments. You are offering the fairest pricing with extra value. Manufacturers create value by differentiating their products while yet charging a reasonable price. It appears to be a difficult task for businesses, and it is, but with the help of modern technological advancements, businesses can now do this. The Integrated Cost Leadership/ Differentiation method is useful when customers are value-conscious and seeking for attractive product qualities. The most obvious issue in this technique is that organizations that utilize low-cost and distinctiveness methods may take potential consumers. Air Arabia is a perfect example of a hybrid business approach in which a creative airline firm delivers superior services in terms of comfort while still offering a low- cost price by simply cutting on premium in-flight services.