Warfare in Toyland

Role of Business Level Strategies in Developing an Organization's Competitive Advantage Business Level Strategies: A plan of action to use the resources of firms, capabilities and distinctive competencies to gain competitive advantage over it’s rivals in a market or industry. It involves Selecting and managing the domain of the organization will compete in and positioning the organization so that it can use its resources and abilities to manage its specific and general environments to protect and enlarge that domain. Business level strategies is an actions which is taken to provide value to the customers and gain a competitive advantage by exploiting competencies in specific, individual product or service markets. Business-level strategy is concerned with a firm's position in an industry, relative to competitors. These 3 decisions are the basis for choosing business level strategies: 1. customer needs, or what is being satisfied; 2. customer groups, or who is being satisfied; 3. Distinctive competencies or how customer needs are satisfied.

Formulating the Business Model:
Customer Needs and Product Differentiation
Customer Needs: Desires, wants, or cravings that can be satisfied by means of product attributes or characteristics. There are two factors that determine which product a customer chooses to satisfy their needs, first the way a product is differentiated from other product and secondly, the price of the product.
For example, some companies aim to satisfy customer needs by offering a low-priced product and they do not engage in much product differentiation. Other companies that seek to create something unique about their products to satisfy customer needs in which other companies cannot. Uniqueness may relate to the following: * Physical characteristics like quality or reliability * Psychological need of customers like status or prestige * The number of models in company's product range * The