NRSC 374 Study Guide - Midterm Guide: Kfc, Peoplesoft, User Friendly
18 Feb 2015
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Business level strategy- the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market. Differentiation- create higher value by delivering products/services with unique features. Cost leadership- create similar value by delivering products/services at a lower cost and lower prices than competitors. The greater the economic value created (v c), the greater the firm"s competitive advantage. A firm"s business-level strategy determines its strategic position. A business strategy is more likely to lead to a competitive advantage if it allows firms to either perform similar activities differently, or perform different activities than their rivals. Generic strategies (i. e. , universal) independent of industry can be used by any organization manufacturing or service, large or small, for-profit or non-profit, public or private, u. s. or non-u. s. in the quest for competitive advantage. Value creation and cost tend to be positively correlated. Thus, there exist important trade-offs between value creation and low cost.
