BAB 4:
COST LEADERSHIP & DIFFERENTIATION
(BUSINESS-LEVEL STRATEGY)
KELOMPOK 4 :
PUTRO NUR CAHYO
GACELIA WENY MARTASARI
MUHAMMAD GHUSTI RAKHA P
NADA KUSTIA PERDANA PUTRI
M ZAKY NUR FITRA WARDHANA
242221013
242221017
242221023
242221025
242221054
Business-Level Strategy is an integrated and coordinated set of commitments
and actions the firm uses to gain a competitive advantage by exploiting core
competencies in specific product markets
The fundamental objective of using any type of strategy is to gain strategic
competitiveness and earn above-average returns
Customers: Their Relationship with Business- Level
Strategy
Effectively Managing Relationships with Customers
Reach, Richness and Affiliation
 Reach the dimension of relationships with customers is concerned with the firm’s
access and connection to customers
Richness is concerned with the depth and detail of the two-way flow of information
between the firm and the customer
Affiliation is concerned with facilitating useful interactions with customers
Who: Determining the Customers to Serve?
What: Determining which Customer Needs to Satisfy
How: Determining Core Competencies Necessary to Satisfy Customer Needs
The Purpose of a Business-Level Strategy
The purpose is to create differences between the firm’s position and those
of its competitors.To position itself differently from competitors, a firm
must decide whether it intends to perform activities differently or to
perform different activities
Types of Business-Level Strategy
Cost Leadership Strategy
The cost leadership strategy is an
integrated set of actions taken to
produce goods or services with
features that are acceptable to
customers at the lowest cost,
relative to that of competitors.
Differentiation Strategy
The differentiation strategy is an
integrated set of actions taken to
produce goods or services (at an
acceptable cost) that customers
perceive as being different in
ways that are important to them.
Focus Strategies
The focus strategy is an integrated set of actions taken to produce goods or services
that serve the needs of a particular competitive segmen
 Types of focused strategies
Focused cost leadership strategy
Focused differentiation strategy
 To implement a focus strategy, firms must be able to complete various primary and
support activities in a competitively superior manner, in order to develop and sustain a
competitive advantage and earn above-average returns
Competitive Risks of Focus Strategies
A focusing firm may be “out focused” by its competitors
A large competitor may set its sights on a firm’s niche market
Customer preferences in niche market may change to more closely resemble those
of the broader market
Integrated Cost Leadership/Differentiation Strategy
The integrated cost leadership/differentiation strategy involves engaging in primary
value-chain activities and support functions that allow a firm to simultaneously pursue
low cost and differentiation.
three sources of flexibility that are particularly useful for firms trying to balance the
objectives of continuous cost reductions and continuous enhancements to sources of
differentiation as called for by the integrated strategy.
Flexible Manufacturing Systems
Information Networks
Total Quality Management Systems
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