The business level strategy provides corporate and companies the power to get their products and services to the market, Win over competitors, and promote the corporate or business in the direction you want it to go.
As the fact still stand that the growth of every business and corporate lies on their customer capacity.
A business level strategy is well defined or explained as a strategic plan that comprises details of corporate or business goals and Ideas set up to use to win the competitors in the market while also meeting up your customer satisfaction.
Table of Contents
The terminology used In Business Level Strategy
Who is a Customer
A customer is a Firm or an individual who buys a product or pays for a service to meet their needs and wants. The ultimate goal of every business or enterprise is to make profits, and for this to be achieved, customers become essential to drive in the revenue.
There is no how a business will grow and have revenue without having a customer, The soul of every business growth is the customer. Although your business is either to offer a product or a service to the market, it needs customers for development, stability, and retrenchment.
That is one of the reasons why you need to conduct market research for the products or services you want to offer to see whether they meet customers’ needs or wants. So you are thinking how does Business Level Strategy relate with all this terminology (Customer, Market, Competitors)
What Is a Market
A market is an actual, conceptual, physical, or virtual medium that brings in contact together with a buyer and sellers in exchange for goods and services for value; The physical medium is the supermarket, Shops, and outlet, while the Virtual Medium is the digital medium like Online(Facebook.com, Phones calls, Sms and some other virtual medium of which the buyer and the seller are not required to meet face to face before they transact.
As an upcoming entrepreneur, it is essential for you first to understand the markets before you plan your business-level strategy. What do you want to offer to the market, what value it has, is it tailored to meet customer needs or enjoy? You can’t avoid the market because that is where your targeted potential customer is.
Businesses need a customer to grow, and c can only meet those customers in the market. Therefore, the market is a terminology that can not be omitted when understanding business-level strategy because it is geared toward utilizing your business products and services to stand out above your competitors to boost your business revenue and increase the business Stability.
They are always there in the market; you can’t hide away from that fact, Or you don’t understand what competitors mean? They are companies, enterprises, individuals, or organizations that also provide the same products or services you are offering in the market.
Whenever you start a business to meet a customer needs or want, and you discover that some other alternate products or services meet such needs and want, You are Already in competition, If you fail to rise to the challenge of winning customer to your business, there is no how you will grow and your competitors we are making more revenue to grow and expand.
The perfect example is a race competition, where every participant is trying to beat each other to emerge as the winner of the race, Every participant in the race is your competitor. This same logic implies in business. The market is the race venue your competitor are already in there.
But don’t panic why your Business-level Strategy is there to develop outstanding Competencies that will give you a tremendous outranking above your competitors in the market. In addition, it will guide you to learn how to handle your competitors and How to direct customer interest for your products and services.
Common Type Of Business level Strategy
Cost Leadership Strategy
This compels corporate and businesses Miraging, their product or service price, to beat over competitors price; the strategy work out when corporate cut down their production costs so to make lower prices for their products or services for customers to choose them over their competitors, This type of Business level Strategy can be adopted by new corporate or business in the market for their products or services to get customers quickly, an existing business can also use it to win more customers to generate sales.
But you have to be strategic about it because the value of what you want to offer must not change, If the customer can get the value they want in your products or services while same at a lower price, they have no option but to choose your brand, But as a business owner, your mathematics and calculation must be accurate to make profits from this strategy.
To make the strategy work out, you must ensure you have a few middleman, Marketer, Reduce Worker, and some other things you can cut down, but the production materials to give out the value the customer desired must not be cut down.
For customers to get attracted to this strategy, you must also consider the following factors
- The quality of the Products Must Be above your Competitors
- The quality should be average with your competitors
The quality should fall in between that two factors. Don’t assume that because you want to cut down the price, the customer we not be bothered about the quality. Customers pay for quality, The quality you have to offer in the market can change customer interest.
This strategy is commonly found among Small Medium Enterprises; It can also be referred to as Focus Strategy; it involves figuring out the consumers varied tastes and deciding to based on one which your competitors are not considering in their products or services. it common among small business
It is a strategy that gives an advantage of less competition and gains customers easily. To figure out the product to based on, there is a need to conduct effective Market Research.
Low Cost Strategy
The strategy involves selling or offering a products or service to a particular market than broad marketing. It one of the effective methods in gaining potential customers, it Seems similar to cost Leadership, but differences still exist between them cause there is no need to cut down prices, and you have the advantage to win all customers in that market you based on than your competitor’s that market to general market