Explain the four business strategies, what each one emphasizes, how they are achieved, and their key issues and training implications.

Training & development 6 qs

The four business strategies are cost leadership, differentiation, focus and innovation. Cost Leadership focuses on developing a competitive advantage through efficient production of goods/services at the lowest possible price. This is typically achieved by reducing costs across all areas of operations while still maintaining quality standards. Key issues include making sure that economies of scale are taken advantage of in order to keep costs down while ensuring products remain competitively priced.

Differentiation involves creating unique value for a company’s offerings which can be done through marketing, product design or customer service etc. This helps differentiate them from competitors while also increasing their appeal among customers. Key issues include understanding what customers value most as well as how best to leverage existing resources in order to maximize returns.

Focus is about targeting specific market segments or niches where one can take advantage of their expertise and knowledge so as to better serve these customers. This requires an in-depth analysis of both current trends and customer needs so that appropriate strategies can be implemented accordingly. Key issues involve identifying opportunities while avoiding potential risks.

Innovation seeks to create new products/markets or find more effective ways of doing things thus helping one stay ahead of competition. This may involve utilizing cutting edge technology or exploring new ideas etc but will require significant resources if it is to yield fruitful results for the firm. Training implications vary depending on which strategy is chosen but all should cover basic concepts such as target marketing, pricing policies etc., in order to ensure successful implementation