We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Business-Level Strategy: Automobile Industry Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 340
  • Category: industry

A limited time offer!

Get a custom sample essay written according to your requirements urgent 3h delivery guaranteed

Order Now

Business-Level Strategy: Automobile Industry Essay Sample

According to the text, business-level strategy is the plan of action that the strategic managers adopt to use a company’s resources and distinctive competence to gain a competitive advantage over its rivals in a market or industry. There are three main business-level strategies, namely; cost leadership strategy, differentiation strategy, and the focus strategy. In this paper, I will be looking at different automakers and the business strategies they use.

According to my research, Ford is said to use cost leadership strategy. When a company is pursuing a cost-leadership strategy, its main goal is to outperform competitors by doing everything they can to produce goods and services at a lower cost than their competitors. The lower costs make the company more profitable than its competitors. Ford struggles to make automobiles that are standardized and acceptable to its customers. They make more efforts to lower their costs so that they are able to sell at a lower cost than its competitors. In doing so they have also made sure that they maintain their production, overhead cost, and minimizing their cost of sales.

BMW is another automobile maker well-known in the world. BMW is considered to use the differential strategy. Differential business-level strategy is used for companies in the business industry to achieve a competitive advantage by creating a product that is perceived by customers to be unique from others. This is done to satisfy customers in a way that its competitors cannot, for example charging a premium price that is above the industry average.

When they charge premium prices helps increase revenues of the differentiators to outperform their competitors and gain above-average profits. According to the text, cars made by BMW command premium prices because customers perceive that the luxury and prestige of owning those vehicles are something worth paying for. Another automaker that uses differential strategy is Toyota. Toyota has differentiated its cars from those of its rivals because of its superior design and quality. This superiority allows Toyota to charge its customers a premium price.

We can write a custom essay

According to Your Specific Requirements

Order an essay
Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member