Guru Jambheshwar University of Science and Technology: Haryana School of Business

Guru Jambheshwar University of science and technology
SESSION 2019-2021
Haryana School of Business
Presentation Topic:- Business Level Strategy
PRESENTED To:- PRESENTED BY:-

Dr. Dalbir Singh Sir Arvind (Roll no -190101010048)
Raveena (Roll no – 190101010034)
Rohit (Roll no -190101010086)
M.B.A (General-B)
Ch4-1
Business-Level Strategy
Ch4-2
The resources and capabilities
Core that have been determined to
Competenc be a source of competitive
y advantage for a firm over its
rivals.
Ch4-3
Core The resources and capabilities that have been
Competency determined to be a source of competitive
advantage for a firm over its rivals.
An integrated and coordinated

set of actions taken to exploit
Strateg
core competencies and gain a
y
competitive advantage.
Ch4-4
Core The resources and capabilities that have been
Competency determined to be a source of competitive
advantage for a firm over its rivals.
An integrated and coordinated set of

Strategy actions taken to exploit core competencies
and gain a competitive advantage.
Actions taken to provide value to

Business customers and gain a competitive
Level advantage by exploiting core
Strategy competencies in specific,
individual product markets.
Ch4-5
Generic Business Level Strategies
Source of Competitive Advantage
Cost Uniqueness
Broad Cost Differen-

Target
Market Leadership tiation
Breadth of
Competitive
Scope
Focused
Narrow Focused
Target Differen-
Market Low Cost
tiation
Ch4-6
Cost Leadership Business Level Strategy
Key Criteria:
Relatively standardized products
Features acceptable to many customers
Lowest competitive price
Ex. Moser bear India

Ch4-7
Cost Leadership Business Level Strategy
Achieving cost leadership:
Accurate Demand Forecasting.

Attaining Economics.
High Level of standardization.
Investment in Cost Saving Technology.
Benefits of cost Leadership Strategy
Effect Price Reduction.
Negotiate Price.
Ch4-8
Effective Cost Leaders can remain
profitable even when the
Five Forces appear unattractive
1) Threat of New Entrants.

2) Bargaining power of buyers.
3) Threat of substitute Products.
4) Bargaining power of Suppliers.
5) Rivalry among Competing
Firms in Industry.
Ch4-9
Major Risks of Cost Leadership
Business Level Strategy
❑ It is Temporary.
❑ It is not Market Friendly Approach.
❑ Technological Shifts.
❑ Competitive Dominance.
Ch4-10
Cost Uniqueness

Target
Breadth of
Competitive
Scope
Narrow
Target
Market
Ch4-11
Differentiation Business Level Strategy
Key Criteria:
Superior.
Preemptive.
High customer service.
Affordable.
Profitable.
Rapid innovation.
Example : Gati , multimodal

transport company Ch4-12
Achieving differentiation:
List that differentiator organisation can adopt in its product:
Offer utility for customer.
Lower the overall cost.
Increase buyer satisfaction.
Enhance status and prestige.
Offer full range of product and services.

Ch4-13
Create Value with Differentiation by:
Lowering Buyers’ Costs.
Raising Buyers’ Performance.
Creating Sustainability.
Ch4-14
Condition of Differentiation
Major conditions under which differentiation is used
Market is too large to catered.

Customer needs and preference.
Premium price valued by customer.
Brand loyalty.
Differentiated features.
Exceptional skill or experience.
Detailed information.
Ch4-15
Effective Differentiators can remain
profitable even when the
Five Forces appear unattractive/Benefits
associated with differentiation strategy
1) Threat of New Entrants.

2) Bargaining Power of Buyers.
3) Threat of substitute Products.
4) Bargaining Power of Suppliers.
5) Rivalry among Competing Firms in
Industry.
Ch4-16
Major Risks faced under Differentiation
Business Level Strategy
❑ Differentiation strategy are limited.

❑ Basis of distinctiveness.
❑ Differentiation fails to work.
❑ Price premium has a limit.
❑ Failure to communicate adequately.
Ch4-17
Cost Uniqueness

Target
Breadth of
Competitive
Scope
Narrow Focused Focused
Target Differen-
Market Low Cost
tiation
Ch4-18
Focused Business Level Strategies
Focused Business Level Strategies involve the same basic
approach as Broad Market Strategies.
However, opportunities may exist because:
Large firms may overlook small niches

Firm may lack resources to compete industry-wide
May be able to serve a narrow market segment

more effectively than industrywide competitors
Focus can allow you to direct resources to certain

value chain activities to build competitive advantage
Ch4-19
May be able to retrofit old factories to keep costs

down
Minimize R&D costs by copying innovators
Examples:
1.Ayur Brand
2. Anchor Toothpaste
Ch4-20
Focused Differentiators may thrive by selecting a

small market that is underserved by large players
Example:
Custom manufacturers of parts for
Harley-Davidson motorcycles
Ch4-21
Major Risks Involved With a Focused
Firm may be “outfocused” by competitors
Large competitor may set its sights on your

niche market
Preferences of niche market may change to

match those of broad market
Ch4-22
Cost Uniqueness

Target
Breadth of Integrated
Competitive Low Cost/
Scope Differentiation
Narrow Focused Focused
Target Differen-
Market Low Cost
tiation
Ch4-23
Integrated Low Cost/Differentiation Strategy
Firms using an Integrated Strategy may:
Adapt more quickly
Learn new skills and technologies
Utilize Flexible Manufacturing Systems to create

differentiated products at low costs
Leverage core competencies through Information
Networks across multiple business units
Utilize Total Quality Management (TQM) to

create high quality differentiated products which
simultaneously driving down costs
Ch4-24
Recognize that the Integrated Low Cost/

Differentiation business level strategy involves a
Compromise
The risk is that the firm may become “Stuck in

the Middle” lacking a strong commitment to or
expertise with either type of generic strategy
Ch4-25
Airlines
Low Cost Differentiation
Focus on customer
Use secondary airports
satisfaction
Fly short routes
High level of employee
No travel agent reservations
dedication
No meals
New flight services for
15 minute turnaround time
business travelers
No reserved seats (phones and faxes)
Ch4-26
Thank
You
Ch4-27

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Guru Jambheshwar University of science and technology

Haryana School of Business

Presentation Topic:- Business Level Strategy

PRESENTED To:- PRESENTED BY:-

An integrated and coordinated

An integrated and coordinated set of

Actions taken to provide value to

Broad Cost Differen-

Relatively standardized products

Features acceptable to many customers

Lowest competitive price

Ex. Moser bear India

Accurate Demand Forecasting.

1) Threat of New Entrants.

Broad Cost Differen-

Example : Gati , multimodal

Offer utility for customer.

Lower the overall cost.

Increase buyer satisfaction.

Enhance status and prestige.

Offer full range of product and services.

Lowering Buyers’ Costs.

Raising Buyers’ Performance.

Market is too large to catered.

1) Threat of New Entrants.

❑ Differentiation strategy are limited.

Broad Cost Differen-

Large firms may overlook small niches

May be able to serve a narrow market segment

Focus can allow you to direct resources to certain

May be able to retrofit old factories to keep costs

Focused Differentiators may thrive by selecting a

Firm may be “outfocused” by competitors

Large competitor may set its sights on your

Preferences of niche market may change to

Broad Cost Differen-

Utilize Flexible Manufacturing Systems to create

Utilize Total Quality Management (TQM) to

Recognize that the Integrated Low Cost/

The risk is that the firm may become “Stuck in

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