The Purpose of a Business-Level Strategy

The reason for having a business-level strategy is to provide clear differences between the firm’s position and those of its competitors. To properly position a firm from its competitors, it must decide whether it intends to perform activities differently or to perform different activities. Preferring to have have activities differently or to perform different activities than competitors is the essence of having a business-level strategy. The firm’s business-level strategy is a deliberate choice about how it will perform the value chain’s primary and supportive activities to create unique value. In the complex twenty-first-century competitive landscape, successful use of a business-level strategy results only when the firm learns how to integrate the activities it performs in ways that create superior value for customers.

Fit among activities is a key to the sustainability of competitive advantage for all firms. Business-level strategy shows actions taken to provide value to customers and gain competitive advantage exploiting core competencies in specific, individual product or service markets. This provides a business time to get a better sense of how it is performing.

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