Business-Level Strategy, Essay Example

Customers’ relationship with business-level strategies is extremely important. Firms are able to maintain and earn relationships with groups of customers, making the strategy profitable for a long time. Finding new ways of satisfying customers, just like Starbucks did, and taking into consideration differences of consumption can make companies “customer service champions”. It is also important to manage all aspects of relationship, ie. advice and after -sales support.

Reach, richness and affiliation are the main aspects of customer relationships. Social networking has proven to be successful to create all three aspects of customer communication and increase involvement. Richness is the detail and dimension of two-way communication between customers and the brand. Affiliations are also increasing customer impact on decisions and provide leaders with important information about satisfaction and potential improvements.

Market segmentation is crucial for a company to be able to determine which customers to serve. It is also important to consider different factors in market segmentation, such as demographic, socioeconomic, consumption and psychological differences.

It is also important that – after successfully determining the market segment to serve to find out more about the customers in that segment. This way the company is able to create a strategy to successfully serve that group and create core competencies that match the expectations of the target market. Upgrading capabilities is necessary in most cases.

The purpose of a business-level strategy is to create a unique market position for the firm that sets it apart from the competition. Differentiating the brand in the market can create a greater level of customer engagement and brand recognition. This can be achieved through integrated cost/leadership/differentiation strategy that creates customer value.