business-level strategy

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1、Business-LevelStrategyBusiness-levelstrategy:anintegratedandcoordinatedsetofcommitmentsandactionsthefirmusestogainacompetitiveadvantagebyexploitingcorecompetenciesinspecificproductmarketsTheCentralRoleofCustomersInselectingabusiness-levelstrategy,thefirmdetermines1.whoitwillserve2.whatneedstho

2、setargetcustomershavethatitwillsatisfy3.howthoseneedswillbesatisfiedManagingRelationshipsWithCustomersCustomerrelationshipsarestrengthenedbyofferingthemsuperiorvaluehelpcustomerstodevelopanewcompetitiveadvantageenhancethevalueofexistingcompetitiveadvantagesFiveGenericStrategiesCompetitiveAdvan

3、tageCompetitiveScopeCostUniquenessBroadtargetNarrowtargetCostLeadershipDifferentiationFocusedCostLeadershipFocusedDifferentiationIntegratedCostLeadership/DifferentiationCostLeadershipStrategyAnintegratedsetofactionsdesignedtoproduceordelivergoodsorservicesatthelowestcost,relativetocompetitorsw

4、ithfeaturesthatareacceptabletocustomersrelativelystandardizedproductsfeaturesacceptabletomanycustomerslowestcompetitivepriceCostLeadershipStrategyCostsavingactionsrequiredbythisstrategy:buildingefficientscalefacilitiestightlycontrollingproductioncostsandoverheadminimizingcostsofsales,R&Dandser

5、vicebuildingefficientmanufacturingfacilitiesmonitoringcostsofactivitiesprovidedbyoutsiderssimplifyingproductionprocessesDifferentiationStrategyAnintegratedsetofactionsdesignedbyafirmtoproduceordelivergoodsorservices(atanacceptablecost)thatcustomersperceiveasbeingdifferentinwaysthatareimportant

6、tothempriceforproductcanexceedwhatthefirm’stargetcustomersarewillingtopaynonstandardizedproductscustomersvaluedifferentiatedfeaturesmorethantheyvaluelowcostDifferentiationStrategyValueprovidedbyuniquefeaturesandvaluecharacteristicsCommandpremiumpriceHighcustomerserviceSuperiorqualityPrestigeor

7、exclusivityRapidinnovationDifferentiationStrategyDifferentiationactionsrequiredbythisstrategy:developingnewsystemsandprocessesshapingperceptionsthroughadvertisingqualityfocuscapabilityinR&Dmaximizehumanresourcecontributionsthroughlowtur