Samsung is Bad

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A business level strategy is an integrated and coordinated set of commitments and actions the firm uses to gain a competitive advantage by exploiting core competencies in specific product markets. 2. What is the relationship between a firm’s customers and its business-level strategy in terms of who, what, and how? Why is this relationship important? The five business-level Strategies Cost leadership: is an integrated set of actions taken to produce goods or services with features that are acceptable to customers at the lowest cost, relative to that of competitors. Firms using the cost leadership strategy commonly sell standardized goods or services (but with competitive levels of differentiation) to the industry’s most typical customers. Differentiation: is an integrated set of actions taken to produce goods or services (at an acceptable cost) that customers perceive as being different in ways that are important to them. While cost leaders serve a typical customer in an industry, differentiators target customers for whom value is created by the manner in which the firm’s products differ from those produced and marketed by competitors. Focused Cost Leadership: is an integrated set of actions taken to produce goods or services that serve the needs of a particular competitive segment. Thus, firms use a focus strategy when they utilize their core competencies to serve the needs of a particular industry segment or niche to the exclusion of others. Focused Differentiation: a business aims to differentiate within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeti... ... middle of paper ... ...firms may be able to lower their costs as well. As technology improves, the competition may be able to leapfrog the production capabilities, thus eliminating the competitive advantage. Additionally, several firms following a focus strategy and targeting various narrow markets may be able to achieve an even lower cost within their segments and as a group gain significant market share. Focused Differentiation: risks resulting from consumer disappointment, distributor resistance and resource misallocation. Integrated cost leadership/differentiation: focusing on consistently reducing costs, adding differentiated features that customers value and for which they are willing to pay a higher price and avoiding becoming "stuck-in-the-middle" by failing to consistently pay attention to the competitive requirements of either or both generic strategies.
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