Explain the four business strategies, what each one emphasizes, how they are achieved, and their key issues and training implications.

Training & development 6 qs

Four business strategies exist: cost leadership, differentiation focus, and innovation. Cost Leadership concentrates on developing a strong competitive advantage by producing goods/services efficiently at the lowest prices. Cost reductions in all operations are usually achieved while maintaining high quality standards. The key is to ensure that you are able to take advantage of economies of scale in order for costs and prices to remain low.

Differentiation involves creating unique value for a company’s offerings which can be done through marketing, product design or customer service etc. This allows them to differentiate themselves from the competition while increasing their customer appeal. Understanding what your customers want and how to best leverage resources to get the most out of them are key issues.

It is important to focus on specific segments of the market or niches, where you can use your expertise and knowledge in order to serve customers better. It is important to analyze both the current market trends and customers’ needs in order to implement appropriate strategies. Key concerns include identifying potential opportunities, while also avoiding risks.

Innovating is about creating new markets or products, and finding more efficient ways to do things. This helps you stay on top of the competition. The firm will need to invest significant amounts of resources in order for this strategy to be successful. This could involve using cutting-edge technology or new ideas. The training implications will vary according to the strategy chosen, but should include basic concepts like target marketing and pricing policies, etc. in order for it to be successful.