Textbook Notes (369,067)
Canada (162,366)
BUS 478 (20)
Chapter 6

Chapter 6: Business-level strategy and the industry environment

2 Pages

Business Administration
Course Code
BUS 478
Larry Wosk

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Chapter 6 Businesslevel strategy and the industry environment Overview Once strategic managers create a successful business strategy they need to continually formulate and implement businesslevel strategies to sustain their competitive advantage overtime Here we examine how companies in fragmented industries can develop new kinds of businesslevel strategies and consider challenges in developing a sustained competitive advantage Strategies in fragmented industries A fragmented industry is one composed of a large number of small and medium sized companies eg restaurant legal services They are characterized by love barriers to entry For some fragmented industries the focused business model will be most profitable as they can specialize by customer group customer need geographic region Others will pursue a cost leadership or the sales revenue enhancing advantage of differentiation Some of these companies like Burger king WalMart MacDonald become chainsChaining A strategy that establishes a network of linked merchandising outlets that act as a single organization They gain the advantages of cost leadership as they gain considerable buying power overcome the barriers of high transportation costs though the establishment of distribution centers as well as gain the benefits of economies of scale amongst othersFranchising A parent company franch
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