Discuss each of the following five business-level strategies:

Before understanding the five business strategies

Let’s first understand what is a strategy?

In business, to develop an organization a thinking process is required. Strategic plan is needed to organize something. It tells us about the desired goals and how to achieve them. It can be a collection of complex information and multilayered plans that helps in achieving present objectives and also includes tactical planning considerations.

Strategy in simple words is a long term plan with pre set objectives to be achieved.

Find details of the following strategies :

1.Cost leadership : An organization has to be a low cost producer in its industry to be attain and manage low cost advantage. There are different cost advantages.

2.Differentiation: These strategies try to make their product or services unique so that they could stand out in competition and consumers values it and willing to pay a premium price.

Focus cost: It serves a particular target by keeping out others .For example a foundation may decide to focus on poverty and issues related to it, such as housing and health care.

Integrated cost/ leadership differentiation: It’s a hybrid model of both cost leadership and differentiation.

Products available from companies following an integrated cost leadership/ differentiation strategy are less differentiated than the products offered by differentiators, and costs are not as low as those of the low-cost leader (that produces standardized products).