Corporate level strategy

Corporate strategy is basically concerned with the choice of business, products and markets It tries to answer key questions like what business the firm should be in in terms of range of products it supplies ? What should be the optional geographic spread of activities for the firm? What range of vertically linked activities should the firm encompass? How the corporate office should manage its group of business?

Importance of strategic level strategy

Organizations use business-level strategies to gain a competitive advantage over industry rivals by exploiting core strengths in specific market segments. One of the primary objectives of business-level strategy is to establish the organization's position in a particular industry relative to competitors. Organizations implement both generic and specific strategies to help gain this competitive edge over rivals. However, business-level strategies pose both advantages and disadvantages

Advantages of corporate level strategy

Bridge the gaps- Corporate strategy helps a firm identify the strategic planning gaps and bridge them through appropriate strategies Exploit the opportunities- the firm can identify the areas where it can profitably operate keeping its own capabilities in mind Develop core competencies- by focusing on its strengths, the firm can build core competencies in certain fields and serve customers better

 Cost leadership : Businesses can find it difficult to set the price of a product to produce an above-average return while remaining competitive. Cost leadership is a business-level strategy that requires the combined efforts of suppliers, designers, research and development, production and distribution. Differentiation : small segment usually requires high-quality products, innovation, technological features and superior customer service.