Answer:
Please find the detailed answer as follows:
Step-by-step explanation:
Managers can pursue one of four business-level strategies: a low-cost strategy, a differentiation strategy, a focused low-cost strategy, or a focused differentiation strategy. Students can discuss any two of the four strategies.
• With a low-cost strategy, managers try to gain a competitive advantage by focusing the energy of all the organization's departments or functions on driving the company's costs down below the costs of its industry rivals. When existing companies have low costs and can charge low prices, it is difficult for new companies to enter the industry because entering is always an expensive process.
• With a differentiation strategy, managers try to gain a competitive advantage by focusing all the energies of the organization's functions on distinguishing the organization's products from those of competitors on one or more important dimensions, such as product design, quality, or after-sales service and support. Organizations that successfully pursue a differentiation strategy may be able to charge a premium price for their products. This allows organizations to recoup their higher costs. Differentiation makes industry entry difficult because new companies have no brand name to help them compete and customers do not perceive other products to be close substitutes, so this also allows for premium pricing and results in high profits. •
Managers pursuing a focused low-cost strategy serve one or a few segments of the overall market and aim to make their organization the lowest-cost company serving that segment.
• Managers pursuing a focused differentiation strategy serve just one or a few segments of the market and aim to make their organization the most differentiated company serving that segment.