Question

n chapter 5 we are introduced to various types of "business level" strategies. Each strategy has its own strengths and weaknesses.

Review these strategies and

choose the one strategy you feel is, the most effective, most long lasting and least risky.

Explain your reasons for this choice.

Answer 1

I think that Cost leadership is one of the most effective, long lasting and least risky business level strategies. It is due to the basic reason that a firm gets upper edge from its competitive scope and achieve sophisticated level of competitive advantage.

For example:

Coke , Unilever , TATA , Macdonald , Google etc. are utilizing this cost leadership strategy and remain competitive as well as earning abnormal profit in the long run.

This strategy will be beneficial to attract every type of customers. An organization can achieve it by investing time, marketing innovation, low price product or services offerings but high quality etc. It should be designed to provide value to the customers in long run. It can be said as an evergreen strategy as it will be less disturb due to changes in the market forces.