Business Level Strategy
MGT 550: Strategic Management
Chapter 04: Business Level Strategy
Instructor
M. Moinul Haque
Notable Quotes
Alice said, “Would you please tell me which way to go from here?” The cat said, “That depends on where you want to get to.”
Lewis Carroll
Even if you are on the right track, you will get run over if you just sit there.
Will Rogers
2
M. Moinul Haque, Premier University,
Chittagong
Business Level Strategy
Core Competency
The resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals.
Business Level Strategy
Indicates how a firm intends to compete in individual product markets. Corporate Level strategy
Identify the businesses in which the firm will compete.
Strategic Management
Chapter 04
M. Moinul Haque
Adjunct Faculty
3
Business Level Strategy
Business Level Strategy
Actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets.
It is an integrated and coordinated set of commitments and actions that firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.
Example
Krispy Kreme’s choices about how to make and distribute its products as well as how to interact with its customers will affect the firm’s ability to earn above average returns across time.
Strategic Management
Chapter 04
4
M. Moinul Haque
Adjunct Faculty
M. Moinul Haque, Premier University,
Chittagong
Business Level Strategy
Key Issues when choosing a BLS
Customers are foundation of successful BLS and should never be taken for granted.
An effective BLS demonstrates the firm’s ability to build and maintain relationships to the best people for maximum value creation, both internally (to firm members) and externally (to customers).
Successful firms think of their employees as internal customers who produce value creating
Chapter 04: Business Level Strategy
Instructor
M. Moinul Haque
Notable Quotes
Alice said, “Would you please tell me which way to go from here?” The cat said, “That depends on where you want to get to.”
Lewis Carroll
Even if you are on the right track, you will get run over if you just sit there.
Will Rogers
2
M. Moinul Haque, Premier University,
Chittagong
Business Level Strategy
Core Competency
The resources and capabilities that have been determined to be a source of competitive advantage for a firm over its rivals.
Business Level Strategy
Indicates how a firm intends to compete in individual product markets. Corporate Level strategy
Identify the businesses in which the firm will compete.
Strategic Management
Chapter 04
M. Moinul Haque
Adjunct Faculty
3
Business Level Strategy
Business Level Strategy
Actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product markets.
It is an integrated and coordinated set of commitments and actions that firm uses to gain a competitive advantage by exploiting core competencies in specific product markets.
Example
Krispy Kreme’s choices about how to make and distribute its products as well as how to interact with its customers will affect the firm’s ability to earn above average returns across time.
Strategic Management
Chapter 04
4
M. Moinul Haque
Adjunct Faculty
M. Moinul Haque, Premier University,
Chittagong
Business Level Strategy
Key Issues when choosing a BLS
Customers are foundation of successful BLS and should never be taken for granted.
An effective BLS demonstrates the firm’s ability to build and maintain relationships to the best people for maximum value creation, both internally (to firm members) and externally (to customers).
Successful firms think of their employees as internal customers who produce value creating