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Business Level Strategy & Industry Life Cycle

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Please, I really need your help. Can you please help me with these sets of questions? Instructions with chart attached. Thanks in advance and I truly appreciate it.

1. Consider the following model of business level strategies:

Low-Cost Leadership Differentiation

Focused Low-Cost Leadership Focused Differentiation

For each of the above business-level strategies:

• Name an organization that practices that strategy, and
• List at least one driver that makes that company successful in its strategy

2. Which business-level strategy do you think is the most durable and successful, and why?

3. Everyone has had an opportunity to observe the evolution of the "view at home" movie industry. Discuss your views on what has happened in that industry from a life-cycle standpoint.

4. Referring back to the Kodak case, what do you think happened to that once mature industry from an industry life-cycle viewpoint? Provide a rationale for your thoughts.

Grant, M. R. (2013). Contemporary Strategy Analysis. (8th ed.). Hoboken, NJ: John Wiley & Sons Ltd.

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Solution Summary

This detailed solution looks at business level strategy (Low-Cost Leadership, Differentiation,
Focused Low-Cost Leadership, Focused Differentiation), provides examples and cost drivers for each type. Also provide analysis of home entertainment industry in terms of industry life cycle and analysis of Kodak and explanation of its industry life cycle. Includes APA formatted reference.

Solution Preview

1. Consider the following model of business level strategies:

Low-Cost Leadership: Examples are Costco, Walmart, and H & M. Walmart is able to achieve low-cost leadership by having a high market share and a strategy committed to low prices. The entire chain revolves around offering the best prices to customers. In order to do this, the company must source products at best prices (eliminating excess packaging, buying unique product sizes to get class of trade discounts) and then distributing the product efficiently. Costs are further contained through control of labor and efficient store operations. Cost drivers include economies of scale (big chain, big sales, thus company can buy more product cheaper) and degree of integration (company has buying, warehousing, distribution facilities that it controls, thus having more control over process and expense).

Differentiation: Examples of this would be Starbucks, Apple and BMW. Each of the companies produces products that are perceived by consumers as superior in some way. As a result, the companies can charge more for their products. Cost drivers for each of these companies include linkage (they each have their own stores/dealerships to showcase products in an upscale manner). Policy choices also impact these companies, in particular Apple and BMW as companies invest in continued research and development to improve product. All three companies are impacted by location of outlets (high price for high visibility) as well as institutional factors (government regulations drive prices up - recycling for all).

Focused Low-Cost Leadership: Tuesday Morning, Claire's, and Red Box are ...

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Sally Baldwin, Ed.D
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  • MSS, United States Sports Academy
  • Ed.D, Boise State University
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