Formulation of Strategic Actions 

- Business and functional Level Strategy   

  

Business level strategy refer to strategies that firms use to build competitive advantages.These strategies include low cost leadership,differentiation and focus strategies.

Business level strategies seek to answer the following question:

• Should the firm compere on the basic of lower cost or should we differentiate our product or services on some basic other than cost such as quality or service?
• Should we compete head to head with our major competitor for the biggest but most sough-after share of the market,or should we focus on a niche in which we can satisfy a less sought-after but profitable segment of the market?

Functional level strategies are actions taken at the functional or operational level and they must be in line or contribute toward the overall strategy of the operation.