Question

1. Define each of the four business strategies (Differentiation, Low-cost, Speed, and Market focus).

2. Identify skills and resources required by each business strategies.

3. Discuss the benefits and risks of adopting each of the business strategies.

Answer 1

1. The Differential business strategy an approach that is used to develop a unique product or service that customers will find a better product. Understanding of the and competitors' product or service.

A low-cost business strategy is useful for the true winner in the market for the same product means if two companies selling the same product or service at the same price then a company which makes low-cost product get more profit advantages.

Speed business is a strategy used for maintaining the climate of the organization that drives employee engagement and performance.

Market focus strategy is to help in business to dominate a niche by focusing on a limited part of a market and helps in developing a plan.

2.. Skills and resources required for each business strategy skills are as define milestone of the company, project management, human empowerment and resources, talent management, scheduling, audit, recruiting, etc.

A resource that is required for business strategy as financial resources, human resources, education resources, physical resources, emotional or supportive resources.

The resources and skills requirements for every business strategy are almost the same.

3. Benefits of adopting differentiation strategy are added additional value, loyalty, a different way to compete for, etc and risks are limitations competitor or change in demand.

In a low-cost strategy, benefits are cut operational cost, increase sales, expand the customer base, etc. And risks are if the competitor is true winner more profit gain by a competitor, focus strategy limitation and target segments changes.

Benefits of speed strategy improve a business move, increase productivity, demand fulfilled, etc. Risk is low-quality products, money liquidity risk, demand change risk, etc.

The benefits of market focus strategy are to build well relations, improve proving structure, limit the competition, etc. The risk is most appealing by rivals, customer choice preference changed and highly attractive in a niche market.