Samsung Is Bad Essay

702 words - 3 pages

A business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.
2. What is the relationship between a firm’s customers and its business-level strategy in terms of who, what, and how? Why is this relationship important?
The five business-level Strategies
Cost leadership: is an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors. Firms using the cost leadership strategy commonly sell standardized goods or services (but with competitive ...view middle of the document...

Integrated Cost leadership/differentiation: Involves engaging in primary
 and support activities
 that allow a firm to simultaneously pursue low cost and differentiation. Because of customer expectations, a number of firms engage in primary and support activities that allow them to simultaneously pursue low cost and differentiation.

Risk Associated with the Business-Level Strategies
Cost Leadership: small-business production methods and processes may limit your company's ability to attain optimal efficiency and lower overall costs in a cost leadership business model. This may happen for a number of reasons, including an inability to purchase the most efficient equipment and large numbers of untrained employees. If your company lacks the capital or trained employees to lower costs, you may actually spend more money in the short term in purchasing more-efficient production equipment and training employees to use the new equipment.
Differentiation: 1) a customer group’s decision that the differences between the differentiated product and the cost leader’s goods or services are no longer worth a premium price, (2) the inability of a differentiated product to create the type of value for which customers...

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