The business-level strategy Sample Essay


Michael Porter is the father of competitive strategy development and came up with the three-level strategy to help businesses get the best out of their competition. The three levels of strategy point to cost leadership strategies, differentiation strategies, and then the focus strategies. The cost leadership strategies point to plans revolving around reducing the prices relative to the competitor in the same market. The objective here is to ensure that the organization reduces its expenses so that to gain an additional market share for that matter. The other strategy points to the differentiation strategy. Here, the organization needs to come up with unique products in the industry. In the end, the individual product will advance and get an improved market share. Eventually, the other business-level strategy worth investigating looks at the focus strategy. It points to a combination of both cost leadership and differentiation strategies. The only difference then falls on and ensures that the business focuses on a market segment and applies the same to get the desired efficiencies.

About the case study, Starbucks must examine additional business strategies as opposed to the differentiation strategy it has applied in managing competition in the restaurant industry. It is prudent that they implement a cost leadership and even try other approaches such as the operational significance in getting the best out of the available strategies and performances. The following analysis seeks to find out a balance between the internal and external functions in Starbucks that could improve its competitive edge. Also, the discussion aims to delve into the differentiation strategies as suggested by the case study and the best approach in getting the best out of the competitive market and analysis.

The business-level strategy adopted

Starbucks needs to ensure that it remains competitive and avoid the downward trend it is facing. So, one way through which such could be implemented points to the fact that the company must look into its differentiation approaches. As seen earlier, the entity has begun making use of its operational efficiency with regards to ensuring it provides a unique type of coffee not offered by the competitors. The other method that the company can use refers to the diversification strategy. Diversification ensures that the company can come out unique in its daily operations and operational efficiencies and performances. In addition to the differentiation strategy, there is also a need for including the focus strategy, which seeks to identify the market niche. The niche ensures that our company exploits the dissatisfactions as managed and implemented in the market.

Evaluation of the strategic fit

The organization needs to achieve a strategic filed by responding to its competitive environment by properly planning and implementing its strategic allocations, core competencies, and capabilities. It is for the same reason that the following analogy goes on to provide an articulate operational efficiency and get to know what to be done both externally and internally. The other key factor worth considering when looking into the strategic fit issues in the case study points to the mission of the organization. The company must, first of all, find its purpose in all this. After all, is said and done, the following analogy will involve and inculcate the positive spirit in managing the full articulations and investigations. Following the above operations, it is crucial to find a link between the business-level strategies to the other operational policy at any given point in time. Starbucks needs to adopt a strategic fit in getting to the bottom of these articulations and investigations. They need to gain control of its external conditions and also the internal conditions for that matter.

The strategic fit and the organizational mission

An organizational mission gives direction and tells employees the purpose of its existence. So, we need to investigate the relationship between the strategic fit and the corporate mission as a tool for operational efficiency and effectiveness. The purpose here should guide us into aligning our strategic goals to the organizational objectives and thus attain our business-level strategy. In the end, the business level strategy here will include but not limited to a differentiation approach in all these. After getting to the bottom of the purpose, then the management can come up with a useful tool for diversification and ensure its coffee sales expands based on various brand selections and approvals at any given point in time. The organizational mission then requires intrusive investigation and operation at any given point in time. In the end, the following analysis seeks to ratify that indeed, the mission and the organizational purpose plays a big part in ensuring we investigate and get to the bottom of the whole investigation and operation.

The alignment to the internal conditions

The internal organizational conditions points to those factors that they can be in a position to influence. Let us take an example of the organizations mission, vision, and core values. These are functions that are developed within the institutions internal function and operations. Another decision worth looking into points to the fact that the internal conditions looks into other factors such as the cultural alignment of the activities under investigation. After all is said and done, a combination of these internal factors goes on to ensure that the coffee house is in a position to twist its objectives, missions and goals to align to the market demand and requirements. Another internal factor worth looking at and the last one for that matter involves including the analogical investigations to do with customer requirements and satisfactions at any given point in time. Customer behavior and needs ensure that we get to the bottom of the clients behavioral patterns. It then allows the company to plan for future operations by getting and aligning organizational strategy to customer needs and requirements for that matter. In essence, the analysis seeks to improve the coffee operations and align this service to competition as an external function. Another way that compliments the above strategy points to the fact that the business level strategy goes on to include other vital aspects including twitting organizational factors to the whole investigations and operations for that matter.

The external conditions investigated

The external situations points to those factors that are outside the reach of an institution. They include, political, economic, social, technological and legal factors. The political factors worth examining points to the factors related to licensing and legal fees. Starbucks must ensure that it gets properly licensed should it attempt to differentiate its product beyond the current coffee sales reach and operations. In the end, these factors also lead to a competitive environment and must always e aligned to these competitive factors worth investigating at any given point in time. The other external factor that businesses looks into the technological aspects worth operations and applications. In the end, the following analogy ensures that we analyze and continually improve on our performance measures and decision making analogies at any given point in time.  External factors here goes on to require alignment to the technological factors affected by the whole investigations for that matter.

Another external condition worth looking into points to factors such as the social-economic conditions. The cultural choices of the target market contributes hugely to the existence and the operational allocations worth evaluating. Let us take an instance where coffee consumption is low, it will force the company to change its strategic model to fit into competitor units like droughts consumption and other fast food related ventures. In addition to the above operations and analogies, it is then crucial that we align the external conditions to the differentiation outcomes. At this point, the company will need to develop unique models that do not require additional licensing for instance. Also, the operational efficiencies ensures that we get to the bottom of everything.


In the end, a business level strategy ensures that we get the best out of our competitors. Michael Porter suggested three strategies worth evaluating. It is crucial to appreciate the fact that the organization needs to evaluate the three and apply the most favorable to its model. In this analogy, it is this significant to appreciate the role of differentiation in aligning business goals to effective performance roles. It is also crucial that we get to investigate the place of strategic fits in manning and making sure the company takes care of its internal and external conditions. It is crucial that the business-level strategy used aligns to the other factors and the end results leave the company competitive at any given point in time.

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