COMM 4351 Chapter 5: COMM 4351 Chapter 5 Notes.docx
Document Summary
Business-level strategy: the business"s overall competitive theme, the way its positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings. Who a company decides to serve (segments) What customer needs and desires the company is trying to satisfy. How the company decides to satisfy those needs and desires. Basically how companies construct a mission statement. In commodity markets, competitive advantage goes to the company that has the lowest cost. Wal-mart (general merchandise industry) because its costs are so low, it can cut prices, grow its market share, and still make profits at price points where it competitors are losing money ex. Differentiation: offering something that rivals find hard to match, allows the company to charge a premium price, helps the company grow overall demand for its good or service, often raises the cost-structure of a firm (ex.
