Relationship between Business Level Strategy, Corporate Level Strategy Essay

Relationship between Business Level Strategy, Corporate Level Strategy and Network Level Strategy - Essay Example As the report discusses successful business level strategies depend on sound customer base. Identification of the groups of customers, the needs and preferences of those customer groups and the core competencies that the firm will be using to satisfy the customer needs form the basis of the business level strategies. Thus the key issues the firm should address while deciding on the business level strategies are the nature of goods and services the firm wants to offer the customers, how to produce such goods and services and how the goods and services can be efficiently be distributed. Once formed the business level strategy reflects where and how the firm has an advantage over its rivals. This paper stresses that Corporate Level Strategy specifies actions the firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in several industries and product markets. A corporate level strategy value is determined by the degree to which the different segments of businesses will prove worth to continue under the same management of the company than they would be under any other form of organization or ownership. Thus an effective corporate level strategy creates across all the business units of the firm cumulative returns that will exceed those returns which the company would earn without the corporate strategy. It also contributes to the strategic competitiveness of the firm. The firm’s ability to earn above-average returns would also be improved.... Once formed the business level strategy reflects where and how the firm has an advantage over its rivals. (Slater and Olsen 2000) 3.0 Corporate Level Strategy: Corporate Level Strategy specifies actions the firm takes to gain a competitive advantage by selecting and managing a group of different businesses competing in several industries and product markets. Markides (1997) describes that a corporate level strategy is expected to help the firm earn above-average returns by creating values just as with the diversified firm's business level strategies. A corporate level strategy value is determined by the degree to which the different segments of businesses will prove worth to continue under the same management of the company than they would be under any other form of organization or ownership. Thus an effective corporate level strategy creates across all the business units of the firm cumulative returns that will exceed those returns which the company would earn without the corporate strategy. It also contributes to the strategic competitiveness of the firm. The firm's ability to earn above-average returns would also be improved. 4.0 Network level Strategy: The Network level strategy defines inter-organizational relationships. Having access to multiple collaborations increases the likely-hood that additional competitive advantages will be formed as the set of resources and capabilities being shared expand. (Rudberg & Olihager 2003) One of the primary benefits of a network level strategy is the firm's opportunity to gain access to a multitude of firms' resources and capabilities. When this happens the probability greatly increases, that partners will find unique ways to uniquely share their resources and capabilities to form competitive advantages.