Types of strategies in strategic management’s third one is a business strategy.
Business strategy is formulated at the business-unit level. It is popularly known as
‘business-unit strategy’. This strategy emphasizes the strengthening of the
company’s competitive position of products or services. Business strategies are
composed of competitive and cooperative strategies.
The business strategy covers all the activities and tactics for competing in
contradiction of the competitors and the behaviors management addresses
numerous strategic matters. As Hill and Jones have remarked, the business
strategy consists of plans of action that strategic managers adapt to use a
company’s resources and distinctive competencies to gain a competitive
advantage over its rivals in a market. Business strategy is usually formulated in
line with the corporate strategy. The main focus of the business strategy is on
product development, innovation, integration, market development,
diversification and the like.
In doing business, companies confront a lot of strategic issues. Management has to
address all these issues effectively to survive in the marketplace. Business strategy
deals with these issues, in addition to ‘how to compete’.