Case Corporate and Business Level Strategies
CBL case 5, Esther Elschot, MSM3A
Problem Statement: What kind of business or corporate level strategy can Axel Springer implement to grow in 3-5 years
Axel Springer AG have to implement a corporate level strategy to grow in 3 to 5 years. A business level strategy is not necessary because a low price or quality based strategy is not suitable, because in the industry that Axel Springer AG is operating in price or quality is not a factor to grow with. The only business level strategy that could be possible is the differentiation. To do something else than the competitors. For instance be the first on abandon the hard copy print. Convergence the print to new media. Or with the corporate level strategy to do a vertical integration. By entering a new market. That could be possible for Axel Springer. For instance focus on the music industry to grow. Because they are already a big company with a well known brand name so they should take advantage of that.
Learning Goals:
1. What are the business & corporate level strategies and what is the difference?(explain the different types of strategies)
Business level strategies
Are strategies that are focussing on the customers. Business level strategies are to strengthen the business unit from a organization. It's about defining your business. You have to answer the following questions; What is to be satisfied? Who is to be satisfied? And how is it satisfied. So it's focusing on your customer groups, customer needs and distinctive competences. The first step in business level strategies is to identify the business unit of the organization. Looking at market based criteria and capabilities based criteria. (Johson&Scholes, 2008)
The second step is to look at the bases of the competitive advantage by looking at the strategy clock. (Jones&Hill, 2010)
If you are focusing on the the competitive advantages than you can formulate a competitive strategy. The
Problem Statement: What kind of business or corporate level strategy can Axel Springer implement to grow in 3-5 years
Axel Springer AG have to implement a corporate level strategy to grow in 3 to 5 years. A business level strategy is not necessary because a low price or quality based strategy is not suitable, because in the industry that Axel Springer AG is operating in price or quality is not a factor to grow with. The only business level strategy that could be possible is the differentiation. To do something else than the competitors. For instance be the first on abandon the hard copy print. Convergence the print to new media. Or with the corporate level strategy to do a vertical integration. By entering a new market. That could be possible for Axel Springer. For instance focus on the music industry to grow. Because they are already a big company with a well known brand name so they should take advantage of that.
Learning Goals:
1. What are the business & corporate level strategies and what is the difference?(explain the different types of strategies)
Business level strategies
Are strategies that are focussing on the customers. Business level strategies are to strengthen the business unit from a organization. It's about defining your business. You have to answer the following questions; What is to be satisfied? Who is to be satisfied? And how is it satisfied. So it's focusing on your customer groups, customer needs and distinctive competences. The first step in business level strategies is to identify the business unit of the organization. Looking at market based criteria and capabilities based criteria. (Johson&Scholes, 2008)
The second step is to look at the bases of the competitive advantage by looking at the strategy clock. (Jones&Hill, 2010)
If you are focusing on the the competitive advantages than you can formulate a competitive strategy. The