Strategic choice and evaluation
In business operations there are four strategies that companies use to facilitate gaining a
competitive advantage over their competitors. These strategies, however, have their differences.
The strategies are cost leadership, differentiation, focused low cost and focused differentiation.
For the cost leadership strategy, organizations normally compete for a wide range of customers
that is based on the price. An example of a company using this strategy is Walmart. In
differentiation, the strategy aims at providing value to customers through coming up with unique
features for their products an example being the Lexus (Brenes, pg. 850). The focused cost
leadership strategy organizations here only compete on price and have specific target customers,
an example is Ikea. For the focused differentiation, businesses compete on basis of a difference
an example of a company using this strategy is food trucks. There is also a new strategy known
as the low-cost strategy where companies are competing on new skills and technologies.
The relationships created between a firm’s customers and its business level strategy is to
ensure that the business survives in the market as well as achieve a competitive advantage over
the company’s competitors. While coming up with these strategies firms must be able to create
value in their products and services that will be able to meet their customers’ needs and wants.
For a business strategy to be successful the company must ensure that they create their strategy
basing in on their customer’s needs. In this relationship who, normally represents the target
customer group that the business what to serve (Porter, pg. 340). Therefore they must clearly
state their market segment. The how represents the competencies that the business holds that can
be used to satisfy their customer’s needs. On the question of what it represents the custom...
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