The Importance Of Selecting A Business Level Strategy

The Importance of Selecting a Business Level Strategy A business level strategy is defined as “an organization’s approach to competing in its chosen markets” (Enz, 2009, p. 167). This type of classification system is widely recognized and allows an organization to quickly label their chosen business level strategy without the necessity to explain in detail their full intent if and when their business level strategy type is altered (Enz, 2009, p. 167). In fact, no business level strategy will be identical from organization to organization, since each business can tailor its strategy to apply specifically to its unique requirements (Enz, 2009, p. 167). In addition, a business level strategy is occasionally made reference to as a competitive …show more content…
170). The benefit to an organization of this type of strategy is that it provides the lowest cost of production or service delivery to the consumer (Enz, 2009, p. 170). A second business level strategy is differentiation, which obligates a business to supply a product or a service that is “preferred” above the competition’s products or services (Enz, 2009, p. 170). The benefit of this type of business level strategy is that it provides a product or a service that is deemed the preferred by the consumer (Enz, 2009, p. 170). And a third business level strategy is best value, which requires a business to provide their products or services of high quality at the low cost of production rate to deliver “the best service value for the cost” (Enz, 2009, p. …show more content…
In fact, Motel 6 is a direct example of the low-cost leadership approach, since they only provide rooms with basic amenities that keep costs low for consumers who are partial to an economical hotel experience (Enz, 2009, p. 172). The Innside Premium Hotels is a European lifestyle company and an example of the differentiation business level approach (Enz, 2009, p. 181). Moreover, this approach has worked for their organization because they are supplying a higher quality service to customers wishing to experience valuable amenities, such as a quality location or additional safety features (security guard or surveillance cameras), and are willing to pay a higher price for those features (Enz, 2009, p. 180). Finally, the Westin Hotels & Resorts are an illustration of the best value business level strategy approach (Enz, 2009, p. 186). Furthermore, this approach has been deemed by a number of scholars as a fusion of the low-cost leadership and differentiation approaches, which utilizes the advantages from both strategies to construct a competitive advantage (Enz, 2009, p. 185). Indeed, this approach has turned out well for the Westin Hotels & Resorts by providing a consistently improving hotel experience to engage guests and create an atmosphere in which they wish to return to again and