Business and Functional Strategy!

Hello guys! Hope you're having a blessed Friday :)

Today i feel so down, i feel demotivated, so here I want to share with you guys a quote to motivate whoever read this and need this.

I am at my lowest point in my whole life, and sometimes I think I cannot survive anymore. But with my family and friends around, I gained my strength and managed to live until today. Alhamdulillah thank you God :) 

Soooooooooooooo, lets get started!

A) B U S I N E S S   L E V E L  S T R A T E G Y

Michael Porter presented 3 generic business level strategies which are cost leadership, differentiation, and focus strategy.

1) Cost Leadership strategy

It refers to the firm's ability to produce a product at a lower cost than the competitors. Companies which utilize a cost leadership strategy would concentrate on providing a basic and standardised product. Firms that adopt this strategy do not customize their products or services to an individual customer’s tastes, needs or desires. Successful implementation of the cost leadership strategy requires a consistent focus on driving costs  relatively lower to competitors’ costs. 

2) Differentiation strategy

Differentiation strategy consists of creating differences in the firm’s products or services by offering something that is perceived industry wide as unique and valued by customers. Firms that use this strategy would emphasize brand image, unique styling, technology, features, a dealer network, customer service or innovative design. 

3) Focus strategy

Focus strategy is based on the firm competing in a narrow scope within an industry where the firm selects a segment or group and tailors its strategy to serve them.The success of a focus strategy rests on the firm’s ability to identify segments that are not properly served or to find market segments that have unique needs or that are so specialized that broad-based competitors select not to serve them.

B) F U N C T I O N A L  L E V E L  S T R A T E G Y

Functional business strategy is often used by small businesses to focus on and manage the business's constituents parts. By developing individual goals and objectives for specific functions in the company, business owners and managers can assign the right people and resources to the right tasks. An employee with skills in technology, for example, can be given work in that field as opposed to one with which she isn't familiar. The advantages of functional business strategy therefore rely on seeing employees and resources as ends, not as a means to achieving something else. This often means assessing the strengths and weaknesses of the business's functions and of its resources, including employees.

The value chain analysis (VCA) is a systematic approach to examine the development of competitive advantage. It consists of a series of activities that create value and cost in a specific business.

Sources are from Dr Ummi's Slides ;)

xoxo,