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Business Strategy
A good investment? Elon Musk has given $75 million so far to sustain Trump
campain to presidence of USA
As a consequence Tesla stock price increased 14% in just 5 days
What is Business level strategy
Business-level strategy focuses specifically on how an organization competes in a
particular market or industry. It determines how a business unit will achieve
competitive advantage and meet the needs of its target customers.
While a normal strategy is more the plan that an organization adopts to achive long
term objectives
Two generic strategies
Competitive advantage:
Competitive advantage refers to a company’s ability to perform in a way that
allows it to outperform its rivals. This could be through lower costs, better quality,
or unique offerings.
Similar product at lower cost (cost leadership)
Price premium from unique product (differentiation)
The goal of competitive advantage is to create and sustain value that competitors
cannot replicate
Competitive scope:
Competitive scope refers to the breadth (ampiezza) of the company’s target
market and the range of products or services it offers.
Business Strategy 1
, The key focus of the competitive scope is to identify in which market the company
choose to compete, so where the company operate.
Broad scope: Is when you target a wide market of offer a wide variety of
products (ex: A global clothing brand targeting customers of all demographics)
Narrow scope: Is when you focus on a specific niche market or a particular
product/service segment (ex: a boutique specializing in high-end luxury
women’s fashion)
Porter’s matrix
It underline the importance or combining competitive advantage with competitive
scope
This image represents Porter’s Generic Strategies Matrix, a framework developed
by Michael Porter to describe how businesses can achieve a sustainable
competitive advantage by positioning themselves strategically. The matrix
combines competitive advantage (cost or differentiation) with competitive scope
(broad or narrow) to outline four strategic positions.
Companies must choose one primary strategy among the four provided to avoid
being “stuck in the middle,” which can lead to weak competitive positioning.
Business Strategy 2
, Goal of differentiation strategy
The goal of the differentiation strategy is to add unique features that will increase
the perceived value of goods and services in the minds of consumers so they are
willing to pay a higher price
What is the idea behind differentiation?
The concept of differentiation is a strategic approach to achive competitive
advantage. Differentiation involves creating value for costumers by offering unique
features, benefit and experience that competitors do not.
In this picture for exmple the Firm A has a clear disadvantage, while the firm B and
C are differentatior meaning that they have a competitive advantage by offering
unique features.
V stands for value
C stands for cost
The difference between V and C (V-C) determines a firm’s competitive position
Business Strategy 3
Business Strategy
A good investment? Elon Musk has given $75 million so far to sustain Trump
campain to presidence of USA
As a consequence Tesla stock price increased 14% in just 5 days
What is Business level strategy
Business-level strategy focuses specifically on how an organization competes in a
particular market or industry. It determines how a business unit will achieve
competitive advantage and meet the needs of its target customers.
While a normal strategy is more the plan that an organization adopts to achive long
term objectives
Two generic strategies
Competitive advantage:
Competitive advantage refers to a company’s ability to perform in a way that
allows it to outperform its rivals. This could be through lower costs, better quality,
or unique offerings.
Similar product at lower cost (cost leadership)
Price premium from unique product (differentiation)
The goal of competitive advantage is to create and sustain value that competitors
cannot replicate
Competitive scope:
Competitive scope refers to the breadth (ampiezza) of the company’s target
market and the range of products or services it offers.
Business Strategy 1
, The key focus of the competitive scope is to identify in which market the company
choose to compete, so where the company operate.
Broad scope: Is when you target a wide market of offer a wide variety of
products (ex: A global clothing brand targeting customers of all demographics)
Narrow scope: Is when you focus on a specific niche market or a particular
product/service segment (ex: a boutique specializing in high-end luxury
women’s fashion)
Porter’s matrix
It underline the importance or combining competitive advantage with competitive
scope
This image represents Porter’s Generic Strategies Matrix, a framework developed
by Michael Porter to describe how businesses can achieve a sustainable
competitive advantage by positioning themselves strategically. The matrix
combines competitive advantage (cost or differentiation) with competitive scope
(broad or narrow) to outline four strategic positions.
Companies must choose one primary strategy among the four provided to avoid
being “stuck in the middle,” which can lead to weak competitive positioning.
Business Strategy 2
, Goal of differentiation strategy
The goal of the differentiation strategy is to add unique features that will increase
the perceived value of goods and services in the minds of consumers so they are
willing to pay a higher price
What is the idea behind differentiation?
The concept of differentiation is a strategic approach to achive competitive
advantage. Differentiation involves creating value for costumers by offering unique
features, benefit and experience that competitors do not.
In this picture for exmple the Firm A has a clear disadvantage, while the firm B and
C are differentatior meaning that they have a competitive advantage by offering
unique features.
V stands for value
C stands for cost
The difference between V and C (V-C) determines a firm’s competitive position
Business Strategy 3
