Business Level Strategy – It is positioning of the business in a relationship with the competition in the market. Areas of focus are the cost and differentiation.
The online delivery model has its leadership cost management and service differentiation. In online delivery, there is less personnel’s work available. The people involved are the owner(s). The business is always easy to run since there is no direct contact between the customer and the business person. The customer orders through written text or a call pay for the agreed cost of the products and waits for the product to be shipped to his/her location. It shows that there are fewer costs since there will be fewer personnel being employed by the board of directors and other department managers.
There are many online businesses, each business service should be unique and a bit different from others so that they can win the competition. In this business plan, the services to be delivered by this model should be exceptional to reduce or eliminate competition.
The focus is on finding a specific function to offer in a niche market. When the cost and differentiation of services are focused, the chances of winning are greater.
Business Level Strategy
In the collection business structure, low-cost leadership implementation is one of the standard problems. In this model, there are very many levels of management. Familiar managers, experts in different fields, managing directors and the board of directors.
To ensure the profits are maximized, the many positions should be changed which is hard according to the model. Product differentiation is common. There are many trade unions and cooperatives hence the business has to come up with a focused product to sell in the gap available in the market.
In the service model, both leadership costs and differentiation can never be ignored. A service industry like a bank has got leaders from the top ranks to the lower levels.
This model uses a lot of money in expenses to pay these employees. If the customers are not satisfied or happy with the service a business provides, they end up going to other providers hence reducing profits. It means that differentiation is a must. The industry should offer services of high quality and the given time slice to win the other companies.
