MGTS3301 Lecture Notes - Lecture 3: Competitive Advantage, In Essence, Cost Leadership
Document Summary
Business-level strategy: how to compete in a specific industry. Definition: an integrated and coordinated set of commitments and actions a firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. In essence, it constitutes how a firm will compete: business-level strategy choices matter because long-term performance is linked to a firm"s strategies. Every firm must form and use a business-level strategy for each one of its businesses. A single-product market/single geographic location firm employs one business-level strategy and one corporate-level strategy to identify what industry the firm will compete in. A diversified firm employs a separate business-level strategy for each product market area in which it competes and one or more corporate- level strategies dealing with product and/or geographic diversity. Resources and superior capabilities that are sources of competitive advantage over a firm"s rivals. An integrated and coordinated set of actions taken to exploit core competencies and gain competitive advantage.
