Business-level Strategies

Surname 1

Student’s Name

Professor’s Name

Course

Date

Business-level Strategies

Student A

One of my favorite brands is Nike. Its unique “swoosh” logo and its emphasis on

innovation through research and development distinguish its athletic apparel and

shoes. Nike employs a differentiation strategy because it competes in the industry

based on exceptionality instead of price. As a result, the brand attracts an extensive

market. In fact, Nike enjoys worldwide popularity. Additionally, the company not

only offers superior features but also communicates the worth of these elements

through smart marketing to potential customers. Evidently, brand building mainly and

advertising are critical to the business-level strategy employed by Nike.

The application readings highlight Wal-Mart among other retailers as some of the

biggest reapers in an otherwise waning retail market. This success is attributed to the

fact that Wal-Mart offers good-quality goods and services at the lowest prices. The

company's executives have echoed that consumers often respond to investments in

cost and for that reason, they were ready to compromise profits for rapid expansion.

Wal-Mart is a famous cost leader that has used the cost leadership strategy to emerge

the world's largest company. The company has the most extensive customer base in

the US which includes people from all social and demographic groups.

Surname 2

Student B reply to Student A

I concur with your characterization of the business-level strategies of Nike

and Wal-Mart as differentiation and cost leadership respectively. Nike is known for

its emphasis on the production of unique products. In fact, the company invests

heavily in innovation by partnering with celebrities to come up with exclusive brands.

Additionally, by endorsing renowned sports personnel, Nike has managed to broaden

its market. Wal-Mart is a typical example of cost-leadership. It has slogans such as

"Always Low Prices" which attract many customers consequently widening its

market. The company has been known to squeeze its suppliers for lower prices which

translate to lowered costs for the customers.

Student B

Drawing illustrations from a few existing companies, the application readings

help to bring better clarity regarding the different generic business-level strategies

used by these establishments. One of the articles highlights Target, Amazon.com,

TJX, Wal-Mart, and Ross stores as some of the cost-leaders that have benefited from

their cost leadership strategy. Gap is also mentioned to have resolved to lower the

prices for its brand Old Navy, an approach that has led to its growth. From the

readings, it is clear that companies competing based on price emphasize on growth

and the ability to make profit despite charging low rates. As such, they have to reduce

their cost structures by improving production efficiency.

Surname 3

The readings also highlight some instances of companies opting to focus on

uniqueness rather than price. For example, Starbucks is currently trying to establish

joints that would appeal to more discerning and affluent customers. Rapha, a British

bike apparel retailer, also seeks to expand its markets to the US by fostering a sense of

community and selling memberships to keep customers coming back. These

companies use the differentiation business-level strategy which emphasizes

uniqueness rather than price. As such, the companies have to invest in product

research and innovation, as well as marketing.

Student A reply to Student B

The application readings make the differences among the generic business-

level strategies clear indeed. You have particularly made a clear distinction between

the cost leadership and differentiation strategies. However, from my perspective,

Starbucks is moving from the cost leadership to the best cost strategy rather than

differentiation. This is because Starbucks is not closing down the over 20,000

ordinary coffee shops it currently operates. Instead, it seeks to create a sub-brand of

luxury coffee houses targeting the affluent and coffee enthusiasts. As such, the

company would still appeal to the regular customers while at the same time attracting

discerning coffee consumers.

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."