Define Strategy And Business Level Strategy: What's The Diff

Define Strategy And Business Level Strategy What Is The Differen

Define strategy and business-level strategy. What is the difference between these two concepts? [10 points] Case Scenario 2: Barracuda Inc. Barracuda Inc. is a lamp fixture manufacturer that is considering an entry strategy into the U.S. home furnishings manufacturing industry. The existing landscape consists of many players but none with a controlling share. There are presently 2500 home furnishings firms, and only 600 of those have over 15 employees. Average net profit after tax is between 4 and 5%. While the industry is still primarily comprised of single-business family-run firms that manufacture furniture domestically, imports are increasing at a rapid rate. Some of the European imports are leaders in contemporary design. Relatively large established firms are also diversifying into the home furnishings industry via acquisition. Supplier firms to the home furnishings industry are in relatively concentrated industries (like lumber, steel, and textiles). Retailers, the intermediate customer of the home furnishings industry, have been traditionally very fragmented. Customers have many products to choose from, at many different price points, and few home furnishing products have strong brands. Also, customers can switch easily among high and low- priced furniture and other discretionary expenditures (spanning big screen TVs to the choice of postponing any furniture purchase entirely). 2. (Refer to Case Scenario 2) Using the five-forces framework, summarize the opportunities and threats facing Barracuda as it considers entry into the home furnishings manufacturing industry. Which threats are greatest to current incumbents? [10 points] 3. Describe a value chain analysis. How does a value chain analysis help a firm gain competitive advantage? [10 points] 4. The text points out that from a resource-based view, you and your firm need to develop overwhelming capabilities to offset the liability of foreignness. However, how does a small firm do that? [10 points] 5. The text points out that not all firms should go global. In view of vast opportunities, why should some firms not pursue international business? [10 points] I attached the required book for this international business course. Use it as your source.

Paper For Above instruction

Understanding the core concepts of strategy and business-level strategy is fundamental for firms aiming to position themselves competitively within their respective industries. Strategies serve as comprehensive plans that outline how a firm intends to achieve its objectives, gain competitive advantage, and create value. They are broad, long-term plans that encapsulate the overall mission and vision of the organization, guiding decision-making at various levels. In contrast, business-level strategy specifically concerns how a firm competes within a particular industry or market segment. It focuses on choices related to product offerings, target markets, competitive positioning, and resource allocation aiming to deliver value to customers effectively.

According to Johnson, Scholes, and Whittington (2020), strategy encompasses the overarching scope and purpose of an organization, whereas business-level strategy directs how a business competes successfully within its chosen markets. For example, a company's corporate strategy might involve diversification across multiple industries, while its business-level strategy within the consumer electronics industry could focus on cost leadership or differentiation (Porter, 1985). The primary distinction lies in scope: corporate strategy operates at the corporate level, governing decisions about multiple divisions or industries, while business-level strategy narrows down to competitive tactics within a single industry.

Referring to the case scenario of Barracuda Inc., a lamp fixture manufacturer contemplating entry into the U.S. home furnishings industry, an analysis rooted in these strategic concepts helps clarify strategic positioning. Barracuda’s broader intention might be to expand its market footprint and diversify revenue streams—a corporate strategy. Within this context, its specific approach to entering the home furnishings segment would constitute the business-level strategy, focusing on product differentiation, cost considerations, or niche targeting. Clarity in these strategies enables the firm to align resources and operational activities effectively, optimizing its chances for success.

References

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