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MGT 488 Week 3-Summary Question

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Based on your readings and discussions from this week ... What is a business-
level strategy?
According to Hitt, Ireland, & Hoskisson (2009), “A business-level strategy is an integrated and
coordinated set of commitments and actions the firm uses to gain a competitive advantage by
exploiting core competencies in specific product markets” (p. 98).
What is the purpose of a business-level strategy?
“The purpose of a business-level strategy is to create differences between the firm’s position and
those of its competitors” (Hitt, Ireland, & Hoskisson, 2009, p. 103). A business-level strategy
designates the decisions a company has made on its plans to compete in individual markets.
Business-level strategies are created from the company’s core competencies and illustrate how
the company decides to contend in the market to achieve competitive advantage.
What are the types of business-level strategies?
The types of business level strategies include “cost leadership which is an integrated set of
actions taken to produce goods or services with features that are acceptable to customers at the
lowest cost, relative to that of competitors. Differentiation is a business–level strategy that is an
integrated set of actions taken to produce goods or services (at an acceptable cost) that customers
perceive as being different in ways that are important to them. Focused cost leadership and
focused differentiation is a business-level strategy that is an integrated set of actions taken to
produce goods or services that serve the needs of a particular competitive segment. Finally,
integrated cost leadership/differentiation involves engaging in primary and support activities that
allow a firm to simultaneously pursue low cost and differentiation” Hitt, Ireland, &
Hoskisson, 2009, p. 105).
Reference
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic Management: Concepts &
Cases Competitiveness and Globalization (8th ed.). Mason, OH: South Western Cengage
Learning.

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