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24087119
CHOOSING A BUSINESS- LEVEL STRATEGY
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Lisbeth Parrales
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kevin wong
Mind Map by
Kevin Wong
, updated more than 1 year ago
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Created by
Kevin Wong
about 4 years ago
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Resource summary
CHOOSING A BUSINESS- LEVEL STRATEGY
Cost Leadership and Differentiation
With technological developments, companies have found it easier to obtain the benefits of both strategies
A company can also reduce both production and marketing costs if it limits the number of models in the product line
Focus Strategy
This ability also gives the focuser power over its buyers
A focused company is a specialized differentiator or a cost leader
Higher costs can also reduce profitability
Stuck in the Middle
Choosing a business- level strategy successfully means giving serious attention to all elements of the competitive plan
Quite commonly, a focuser gets stuck in the middle when it becomes over- confident and starts to act like a broad differentiator
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