Business-Level and Corporate-Level Strategies

Week 8 Business-Level and Corporate-Level Strategies
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BUS499 Business Administration Capstone
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Week 8 Business-Level and Corporate-Level Strategies
Companies use business-level strategies and act as a guide on how they attain a sustainable competitive advantage over their rivals. These strategies have been instrumental in determining the nature of competition in any given market and have helped increase innovation and product development. As such, a business-level strategy is determined by its position in the market or industry compared with competitors. These strategies outline the actions taken by a firm to provide value to its customers and acquire a competitive advantage in a given market. Corporate level strategies, on the other hand, encompass plans that define a firm’s main purpose and objectives. The purpose of this discussion is to explicate business-level and corporate-level strategies and how firms can apply them to maintain a lead over their competitors. In achieving this, Nike Inc. is used as a focal point. An assessment is made on how the company has been able to exploit business-level strategies and corporate-level strategies to remain ahead of the competition over the years.
Business-Level Strategies
There are various generic business strategies that a firm can choose from to develop a competitive advantage. According to Baumann-Pauly, Scherer & Palazzo (2016), a cost-leadership strategy entails pricing products at the minimum price possible to sustain leadership in the market/industry. This strategy is used when the firm is looking to appeal to customers who are sensitive to price. In realizing low costs, a firm may cut down on the cost of operation, optimize the use of assets, or use economies of scale. The differentiation strategy is developing products with unique features or whose selling points are unique compared to those provided by market competitors. Finally, focus strategies entail targeting a certain population within a small market to sell a firm's product. Such a market is characterized by specialized needs that firms exploit in developing their products.
As enshrined in its mission and vision statement, the firm's objectives are to provide customers inspiring and innovative products while ensuring its brand remains distinctive and connected. Since its formation, the company has enjoyed continued growth and has remained ahead of its competitors over the years (Fung, Choi & Liu, 2020). The company, which operates in sportswear and apparel, has used two business strategies to achieve its vision and mission; differentiation strategy and cost leadership strategy.
Arguably, the business model used by Nike is generally molded around differentiation. As its main business strategy, the company has focused on using technology and innovation to provide unique products for its customers. This has been critical in helping it stay ahead of the competition. To start with, the company has invested hugely in research and development to provide customers with unique quality customers. Through innovation, the company has developed products such as i-pod distance tracking products and auto/lacing shoes that other competitors can on...