Business Strategy

 

The Strategic Management Process

 

The company’s core competencies should be focused on satisfying customer needs or preferences through business-level strategies. These strategies detail actions taken to provide value to customers and gain a competitive advantage by exploiting core competencies in specific, individual product or service markets. In other words, business-level strategies are developed based on a company's core competencies and indicate how a company chooses to compete in a particular market to gain a competitive advantage over competitors.

 

 

 

Figure: Path to Business Level Strategy

 

A company's business-level strategies are not formulated and implemented in isolation.  The Internet is having a great impact on customers, so companies must shape their business-level strategies to adapt to this new form of commerce.

 

 

A company will be able to achieve strategic competitiveness and earn above-average returns when customers are the focus or foundation for its strategic actions. A customer focus requires that companies simultaneously evaluate or consider:

who to serve

what customer needs will be satisfied

how those needs will be satisfied through the strategy selected