Cost Leadership Business-Level Strategy

Firms choose among several business-level strategies (Figure 4.1 on page 117) and defend their desired strategic position against competitors. When selecting a business-level strategy, firms evaluate two types of potential advantage: 1) lower costs than rivals, or 2) ability to differentiate and sell at a premium price.
Note: For the purposes of this discussion, we will ignore focused business level strategies which deal with niche markets: focused cost leadership and focused differentiation (see Figure 4.1 on page 117) and instead discuss the broad target strategies.
Question 3 – Cost Leadership Business-Level Strategy
Define this strategy. Provide an example of a company with this business-level strategy. Describe several value chain activities of this company through which the firm implements this strategy.
(Make sure that you address each and every sub-question to get full credit for the initial post.)

Sample Solution