Boston Consulting Group Discussion Strategies

The third type of defensive strategy is liquidation. This is whenever an organization sells a business and its property. The last corporate-level strategy is a combination strategy. This strategy can be seen as the give and get strategy. An organization will decide to broaden one part of their organization, while at the same time get rid of another part. According to Slack & Parent (2006), “In diversified companies that use combination strategies, one popular technique for analyzing the relative merits and cash flow requirements of their product or service offerings is that developed nu the Boston Consulting Group (BCG)” (pg. 117). The BCG analyzes and pinpoints different strategic business units for the different fields in which the organization …show more content…
These strategies are used for products to get ahead of competing businesses. There are three different types of business-level strategies: cost leadership, differentiation, and focus strategy. The first business-level strategy is the cost leadership strategy. This is used to reduce the amount of a product or duty lower than other businesses by using low-cost labor, active manufacturing methods, technology, and small division of product. According to Slack and Parent (2006), “The main strength of this type of strategy is that a cost advantage protects a sport organization from the fluctuations of the marketplace and caused by such factors as changing input costs and imitators” (pg 119). The next business-level strategy is the differentiation strategy. This strategy is used to try to increase competitive profit by making a product or labor sound special. Whenever an organization makes something sound special, people are willing to buy it at a higher price. The advantage for this strategy is that it brings sense of devotion to the organization’s product. The flaw of this strategy is that the company always has to keep something special in their product, and finding uniqueness while increasing profit can be difficult. The next business-level strategy is a focus strategy. This strategy is used to meet the requirements of a specific market, with specific criteria such as age, gender, or even the location. The advantage of this strategy is that a business can evolve and supply good and labor that other businesses cannot. The one drawback of this strategy is that it may cost a business more money in order to meet the need of that certain focus

Related Documents