corporate level strategy assignment

Corporate Level Strategy: Explained with Examples and Types

A corporate-level strategy refers to the overarching strategic plan that dictates the direction of the entire organization. It’s the highest level of strategy, covering all of the firm’s diverse operations, and is typically set by top management and the board of directors.

Key aspects of corporate-level strategy include:

• Growth strategy:  Determining how the corporation plans to grow, whether through internal development (new products, new markets), external methods (acquisitions, mergers, strategic alliances), or a combination of both.
• Stability strategy:  If a corporation is satisfied with its current growth and success rate, it may opt for a stability strategy, which involves maintaining the status quo.
• Retrenchment/turnaround strategy:  When a corporation faces significant problems, it may adopt a retrenchment strategy to realign resources, reduce the size, or improve efficiency to improve financial performance.
• Portfolio management:  At the corporate level, the organization must manage its portfolio of businesses effectively. This can involve deciding to invest in, hold, harvest (reduce investment), or divest certain business units.
• Geographic strategy:  Corporations must also decide on their geographic scope, from local to global. This involves deciding which markets to enter, when, and on what scale.
• Competitive strategy:  This involves the plan of action that a company develops to gain a competitive advantage in its market, such as cost leadership, differentiation, or a focus strategy.

In large corporations with several business units, a corporate strategy also involves deciding how much autonomy to give each business unit, how to allocate resources, and how they should interact with each other. This holistic strategy must align with the organization’s overall mission, vision, and long-term objectives.

Examples of Corporate-Level Strategy

Sure, here are a few examples of corporate-level strategies that well-known companies have implemented:

• Amazon’s Growth Strategy:  Amazon began as an online bookstore but didn’t stop there. It expanded its product line to include electronics, clothing, and more, developing into a comprehensive online retail giant. It also expanded into new business areas like cloud computing services with Amazon Web Services (AWS), which has become a significant part of its business.
• Google’s Diversification Strategy:  Google started as a search engine but, over time, diversified into various other sectors. For example, it acquired YouTube, created Android OS, launched Google Cloud, and ventured into self-driving cars with Waymo. These initiatives have helped Google stay competitive and innovative while spreading risk across various sectors.
• Coca-Cola’s Geographic Expansion Strategy:  Coca-Cola’s corporate strategy involved expanding its geographic footprint from its original base in the US to almost every country in the world. This international expansion allowed Coca-Cola to become one of the most recognized brands globally and helped them diversify their markets, reducing dependence on any single region.
• Facebook’s Acquisition Strategy:  Facebook’s corporate strategy involves acquiring and integrating potential competitors into its portfolio. Some notable examples include Instagram and WhatsApp. These acquisitions helped Facebook grow its user base, diversify its services, and maintain its competitive edge in the social networking industry.
• Microsoft’s Turnaround Strategy:  In the mid-2010s, Microsoft underwent a strategic shift under CEO Satya Nadella. The company transitioned from a “devices and services” strategy to a “cloud-first, mobile-first” approach. This shift led to significant growth in cloud services like Azure and Office 365 and helped Microsoft regain its position as one of the leading tech companies.
• Unilever’s Sustainability Strategy:  Unilever launched the Unilever Sustainable Living Plan in 2010 to reduce its environmental footprint and increase its positive social impact. This strategy, which involves every aspect of the corporation, reflects a commitment to sustainability that is becoming increasingly important to consumers, employees, and stakeholders.

Remember that the success of a corporate-level strategy depends on many factors, including the company’s context, resources, and capabilities, as well as external factors like market trends and competitive landscape.

Types of Corporate-Level Strategy

Corporate-level strategies essentially focus on decisions about what business areas to compete in and how to manage these business areas to achieve corporate goals. Some of the key types of corporate-level strategy include:

• Growth Strategy:  A corporation may decide to expand its activities. This can be accomplished in various ways, such as by developing new products, entering new markets, increasing market share in existing markets, or through mergers and acquisitions. Growth Hacking Strategy: Examples, Case Study, B2B
• Stability Strategy:  This strategy is pursued when a corporation is satisfied with the same business and wants to continue the same activities. It’s often used in a predictable and stable environment where the business operations are successful and there are minimal opportunities or needs for growth.
• Retrenchment Strategy:  This strategy involves reducing the company’s size or diversity, often through selling or closing certain businesses or divisions. This is typically used when a company faces difficulties and needs to refocus its resources on areas where it can be more competitive. What is a Retrenchment strategy: Explained with types & examples
• Diversification Strategy:  Under this strategy, a corporation decides to enter into new markets with new products. Diversification can be related (where the new businesses have some connection to the existing businesses) or unrelated (where the new businesses are not connected to the existing businesses).
• International Strategy:  Companies that expand their operations beyond their home country must adopt an international strategy. This could involve exporting, licensing, franchising, establishing joint ventures with a foreign company, or setting up a wholly-owned subsidiary in another country. International Business, Marketing Strategy & Strategic Management
• Portfolio Strategy:  In this strategy, a corporation manages its businesses as a portfolio, similar to how an investor would manage a portfolio of investments. The corporation invests in business units expected to perform well and divests from those that do not.

Each type of corporate-level strategy provides different ways for a corporation to define and pursue its goals. The best choice of strategy depends on the corporation’s current situation, its resources and capabilities, the environment in which it operates, and the vision of its leadership.

Case Study on Corporate Level Strategy

Let’s take a look at the corporate-level strategy of Disney:

Disney’s Diversification and Expansion Strategy:

Disney, which started in the 1920s as a motion picture company, has successfully adopted a diversification and expansion strategy to evolve into a diversified global entertainment company. This strategy can be seen in the various segments of the company’s operations:

• Theme Parks and Resorts:  Disney’s decision to create Disneyland in the 1950s was a key part of its diversification strategy. The company later expanded this segment by establishing Disney World and international theme parks in Paris, Tokyo, Hong Kong, and Shanghai.
• Media Networks:  Disney diversified into television with the creation of the Disney Channel and later expanded into network television with the acquisition of ABC. It also purchased ESPN to enter into the sports broadcasting market.
• Studio Entertainment:  Disney has continuously expanded its studio entertainment segment by acquiring other studios such as Pixar, Marvel, Lucasfilm (Star Wars franchise), and most recently, 21st Century Fox. These acquisitions have allowed Disney to expand its movie portfolio and capitalize on popular franchises.
• Consumer Products and Interactive Media:  Disney has used its brand and characters to diversify into consumer products and digital games, creating a comprehensive entertainment experience for consumers.
• Disney+:  Seeing the success of streaming services like Netflix and Amazon Prime, Disney launched its streaming service, Disney+, which rapidly gained a substantial subscriber base.

Disney’s corporate-level strategy has been successful because of the synergy between its business units. For example, a movie from Marvel can drive consumer product sales, visits to theme parks, viewership on their media networks, and subscribers for Disney+. This synergy, along with the strong Disney brand, has allowed the company to succeed across various entertainment segments.

Disney’s corporate-level strategy shows how diversification and expansion, coupled with strong execution, can create a leading position in a competitive industry. It’s also a good example of how a company can use its resources (in this case, Disney’s brand and characters) to create synergies between different business units.

Disney’s journey to becoming the World’s greatest storyteller

Related Posts

LinkedIn marketing strategy for small business

Business Performance Analysis

Demand Based Pricing: Meaning | Examples | Types

B2B2C: Meaning | Examples | Business Model | Marketing

Business Engineering

Inventory Management Techniques

How do you design the strategy of your PowerPoint?

The Art of Persuasion: Techniques for Influencing Buying Decisions

Type above and press Enter to search. Press Esc to cancel.

• Scroll to top

•   / Sign Up
• HOW WE HELP CLIENTS
• schedule your conversation

Business Level Strategy: Examples & Types for Business Strategy Success

Published: 19 April, 2024

Social Share:

Digital Strategy

Get the Full Package for FREE & OpenSource

• Get instant access to this model including a full presentation, related tools and instructions!
• You will equally get instant access to all 50+ UNITE Innovation & Transformation Models!
• Completely FREE and OpenSource!

Table of Contents

In strategic management, businesses use a variety of approaches to craft a business model that stands apart from competitors. Among these, types of business-level strategies are particularly effective. Defining and implementing an effective business level strategy is more crucial than ever. This strategy determines how a company will compete in its chosen market or markets and is a vital component of the overall business strategy . An effective business level strategy can significantly enhance a company’s ability to respond to market conditions, leverage its strengths, and achieve sustainable growth.

Business Level Strategy is a crucial component of the strategic management process within any organization aiming to achieve competitive advantage. By focusing on market positioning and meeting the needs and preferences of specific market segments, this strategy helps companies differentiate from competitors and achieve business needs. At Digital Leadership, we recognize the criticality of strategic adaptation and innovation in today’s business landscape. Our expertise in digital strategy and execution places us in a unique position to help businesses leverage their core competencies and navigate through the complexities of market competition.

What is Business Level Strategy?

Business Level Strategy guides firms in navigating competitive markets and aligning their operational activities with broader business goals . This strategic approach focuses on achieving competitive advantage through customer satisfaction, optimizing operational efficiency, and adapting to the ever-changing market dynamics. Understanding Business Level Strategy is crucial for any organization aiming to sustain and enhance its market position.

It provide frameworks that help businesses craft pricing strategies and reduce production costs, ultimately leading to good cost leadership. By following the principles outlined by Michael Porter and focusing on these three strategies, businesses can effectively attract customers and enhance their market position.

We believe that strategy is the driving force behind business success, and that our strategy execution framework model can help you successfully execute your strategy.

Your download is now available!

You can now access the complete SWOT Framework Package, including a full presentation, related models and instructions for use.

The SWOT / TOWS Analysis Framework

2) understand the competitive environment.

Analyzing your competitive environment allows you to identify key competitors and market trends, helping to position your strategy effectively.

3) Define Strategic Objectives

Clear strategic objectives must be set to guide the direction of your business efforts and to measure progress against these goals.

4) Identify Target Customer Segments

Understanding who your customers are and what they need is crucial in tailoring your business strategy to meet their demands.

5) Select the Right Business-Level Strategy

Choose a strategy—be it cost leadership, differentiation, or focus—that aligns with your company’s strengths and market opportunities.

6) Develop Action Plans

Action plans translate your strategy into actionable steps that can be implemented within your organization.

7) Build Organizational Support Culture

Foster a culture that supports the strategic goals through training, leadership alignment, and employee engagement.

8) Implement and Monitor Key Performance Indicators (KPIs)

Implement the strategies and monitor their success through key performance indicators.

9) Evaluate the Effectiveness of the Strategy

Regularly evaluate the effectiveness of your business strategy to adapt and pivot as necessary.

Importance of Integrating Business Level Strategy in Organizations

As a piece of your  Organizational Strategy,  your  Business Level Strategy  articulates many of the operations that you’ll implement in order to achieve your broader  business goals.  There are several reasons why Business Level Strategy is an important piece of every thriving organization’s overall approach to the work they do.

• Facilitates differentiation from competitors
• Guides decision-making
• Enhances focus and defines target market
• Supports long-term planning
• Facilitates growth and development

(1) Facilitates differentiation from competitors

A strong Business Level Strategy enables an organization to gain a competitive advantage over its rivals.

(2) Guides decision-making

A clear Business Level Strategy helps managers coordinate their efforts and allocate resources effectively. With clear  strategic planning , a business is less-likely to undertake wasteful investments.

(3) Enhances focus and defines target market

Having a well-defined Business Level Strategy enables organizations to focus their efforts on the most critical aspects of their business, including a well-defined target market.

(4) Supports long-term planning

Effective Business Level Strategy provides a foundation for long-term planning and helps organizations set goals and objectives.

(5) Facilitates growth and development

The right Business Level Strategy can help organizations grow and develop by providing a roadmap for expanding into new markets, launching new products, and diversifying their operations.

Business Level Strategy is crucial for organizations to succeed in today’s rapidly  changing business environment . It helps organizations stay focused, make informed decisions, and achieve their  long-term goals.

How to Choose The Right Business Level Strategy To Gain a Competitive Advantage For Your Company?

Selecting the right business level strategy involves understanding your market, assessing your internal capabilities, and aligning your business goals with customer needs. This strategic alignment is crucial for gaining a competitive edge and ensuring the successful business outcome. To choose effectively:

• Assess the Market: Understand the dynamics of your market, including customer behavior, competitor strategies, and emerging trends. This will help identify opportunities where your business can effectively differentiate itself.
• Evaluate Internal Capabilities: Look at your company’s strengths and weaknesses to determine which type of strategy can make the most impact. For instance, if your production costs are inherently lower, a cost leadership strategy may be advantageous.
• Align with Customer Needs: Identify and understand the specific needs and preferences of your target segments. Strategy to attract customers should focus on how your offerings align with their expectations and how you can solve their problems better than competitors.

By carefully considering these elements, businesses can select a business level strategy that not only complements their strengths and the market environment but also resonates well with desired customer segments.

Challenges of Implementing Business-Level Strategies and How to Overcome Them

Challenges in implementing business-level strategies often include alignment of resources, resistance to change, and market unpredictability. Here’s how to address these challenges:

• Alignment of Resources: Ensure that all parts of the business are geared towards the strategy. This includes allocating budget, manpower, and other resources to support strategic initiatives.
• Resistance to Change: Change can often meet resistance within an organization. Overcoming this requires strong leadership to communicate the benefits clearly and to involve key stakeholders in the strategy development process. Engaging employees early and often helps in gaining their buy-in and making them feel a part of the journey.
• Market Unpredictability: To deal with unpredictability, businesses must remain flexible and agile. Regularly reviewing and adapting the strategy based on market feedback and performance can help stay relevant. Implementing a feedback loop from customers and frontline employees can provide insights that lead to quicker adjustments.

In implementing these strategies, companies can navigate the complexities of market competition and internal dynamics, enabling them to achieve specific goals and foster growth. This strategic approach not only helps in attracting customers who are looking for differentiated offerings but also enhances the company’s ability to compete effectively in new markets and with new products, ultimately ensuring the successful business in the long term.

Case Studies of Business-Level Strategy Implementation

Exploring case studies from successful companies like Apple and Starbucks can provide valuable insights into effective business-level strategy implementations. Both companies have masterfully used business-level strategies to carve out dominant positions in their respective markets through differentiation and a focus on customer loyalty.

Apple: A Synonym for Uniqueness and Differentiation

Apple’s business-level strategy hinges on its unparalleled ability to innovate and create products that define uniqueness in the market. The company’s focus on aesthetic design, user-friendly interfaces, and cutting-edge technology appeals to a specific niche of technology enthusiasts and premium product consumers. Apple not only differentiates its products but also maintains a higher price point to match its brand prestige, which in turn bolsters customer loyalty and premium positioning.

Starbucks: Crafting a Unique Customer Experience

Starbucks employs a differentiation business strategy that goes beyond just selling coffee. It creates a distinctive and comforting “third place” (apart from home and work) which resonates deeply with consumers. By focusing on the ambiance, consistent quality across outlets, and excellent customer service, Starbucks maintains customer loyalty and effectively differentiates itself in a crowded market. Their strategy includes exploring new markets and consistently innovating the customer experience, which keeps the brand relevant and loved.

How to Optimize the Customer Journey in Modern Business Level Strategy Execution

Optimizing the customer journey in the modern business environment involves a meticulous understanding of customer touchpoints and consistently enhancing interactions to improve customer experience and foster loyalty. This requires an integration of cost and differentiation strategies where businesses need to cut costs while enhancing the value offered to customers. This dual approach ensures that the business remains competitive on price while differentiating its offerings to better meet customer needs.

Effective optimization might involve using digital tools to streamline the purchasing process, offering personalized interactions through AI and machine learning, and constantly gathering feedback to refine the customer journey. Each step should be designed to enhance customer satisfaction and deepen engagement, turning one-time buyers into lifelong advocates.

Performance Indicators (KPIs) for Evaluating Business-Level Strategy Success

To measure the effectiveness of business-level strategies , organizations must establish and monitor Key Performance Indicators (KPIs). These indicators help businesses gauge their performance in areas critical to their strategic goals, such as:

• Market Share Growth: Measures the company’s ability to expand its presence in new and existing markets.
• Profit Margins: Keeps track of profitability changes, which reflect the success of cost leadership strategies and the ability to manage costs effectively.
• Customer Satisfaction Levels: An essential metric for assessing how well the company meets customer expectations, a direct outcome of differentiation strategies.
• Customer Retention Rates: Indicates customer loyalty, which is crucial for long-term success and is directly influenced by the company’s ability to maintain its uniqueness and meet customer needs.

By integrating these elements into the business-level strategy , companies can ensure that they not only survive but thrive in competitive markets, leveraging their unique strengths to meet complex and ever-changing market demands.

Frequently Asked Questions

1) what is the advantage of setting business-level strategies.

Setting business-level strategies provides a clear roadmap for operational success and competitive positioning. It enables a company to tailor its operational focus to specific market demands, ensuring that resources are allocated efficiently to drive market share and profitability.

2) How often should a business-level strategy be reassessed?

Business-level strategies should be reassessed annually or whenever significant market shifts occur. This reassessment ensures that the strategy remains relevant and effective in addressing the current market conditions and company objectives.

3) Business-level strategy addresses which overarching question?

It addresses the critical question of how a company can achieve a competitive advantage in its designated market. This involves a deep understanding of the market, competitive forces, customer preferences, and internal capabilities.

4) Can Business Level Strategy Change Overtime?

Yes, business-level strategy can and often does change over time. As market conditions evolve, companies may need to adapt their strategies to maintain competitiveness. This could involve shifting from cost leadership to differentiation, targeting new customer segments, or even redesigning products to better meet the changing needs of the market.

Related Posts

Digital business strategy examples, definition, and strategies.

In a time marked by rapid technological evolution and unprecedented interconnectedness, businesses1

Business Capability Map Model for Mapping Business Capabilities

To create successful innovations, it's crucial to leverage the existing strengths of1

Unfair Advantage: What is it, and how do you find yours?

Every business, everywhere, is hoping it can provide something to customers that1

Ambidextrous Organization: Examples, Definition, Levels & Benefits

Ambidextrous organizations are a concept that has been gaining traction in the1

Recent Posts

Examples and Types of Effective Functional Level Strategy for Business Support

A key objective of any business strategy is to improve operational efficiencies...

The Three Levels of Strategy: Corporate Strategy, Business Strategy, and Functional Strategy

Understanding the intricate levels of strategy is crucial for any organization aiming...

Register For Your FREE 
Innovation WorkShop Seat Now!

Learn how to overcome the 90% failure rate in innovation from a master innovator and best-selling author.

Expert tactics to boost your innovation odds.

Insights on capturing customer needs for innovation.

Tools that turn your ideas into triumphs.

First name *

Last name *

Professional E-mail *

I want to be kept up-to-date and accept the privacy statement *

By signing up, you agree to receive news and accept the privacy statement (mandatory)

Verify your e-mail address now by entering the 6-digit code we’ve just sent to your inbox

Don't receive Code? Resend code

Last one step

Help us better understand our innovation Show members

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Seniority * Please Select Junior Consultant Senior Consultant Manager Senior Manager Director VP SVP Partner CXO Board Member

Areas of interest * Innovation Digital Transformation Culture & Organization IT Strategy & Bus. Alignment Customer Experience

Discover the largest library of innovation & transformation tools on the entire Internet!

LOG IN VIA E-MAIL

Forgot password?

New to Digital Leadership? Create your account

Thanks, We’ve Received Your Updated Details

Learn how to overcome the 90% failure rate in innovation from a master innovator & bestselling author!

Your e-mail address: * Your first name: *

One Last Step..

Help us better understand the UNITE community

Free guide to improve your innovation success rate*

Our 35-page comprehensive innovation guide covers the key areas why innovation fails. While it cannot cover all the solutions (that would take books to fill), it provides you with a convenient starting point for your analysis and provides further resources and links to the corresponding UNITE models, ultimately allowing you to work towards a doubling and tripling your chances of success.

Get access to the UNITE Models now!

Discover the largest library of innovation & transformation tools on the internet!

Choose Your Password *

Confirm Your Password *

Already have an account? Log in

Country * Please Select Afghanistan Albania Algeria Andorra Angola Antigua and Barbuda Argentina Armenia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin (Dahomey) Bolivia Bosnia and Herzegovina Botswana Brazil Brunei Brunswick and Lüneburg Bhutan Bulgaria Burkina Faso (Upper Volta) Burundi Cabo Verde Cambodia Cameroon Canada Cayman Islands Central African Republic Central American Federation Chad Chile China Colombia Comoros Congo Free State Costa Rica Cote d’Ivoire (Ivory Coast) Croatia Cuba Cyprus Czechia Democratic Republic of the Congo Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Eswatini Ethiopia Fiji Finland France Gabon Gambia Georgia Germany Ghana Grand Duchy of Tuscany Greece Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Holy See Honduras Hungary Iceland India Indonesia Iran Iraq Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Kiribati Korea Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libya Liechtenstein Lithuania Luxembourg Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Mauritania Mauritius Mexico Micronesia Moldova Monaco Mongolia Montenegro Morocco Mozambique Myanmar Namibia Nassau Nauru Nepal Netherlands New Zealand Nicaragua Niger Nigeria North Macedonia Norway Oman Pakistan Palau Panama Papal States Papua New Guinea Paraguay Peru Philippines Piedmont-Sardinia Poland Portugal Qatar Republic of Congo Republic of Korea (South Korea) Republic of the Congo Romania Russia Rwanda Saint Kitts and Nevis Saint Lucia Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Schaumburg-Lippe Senegal Serbia Seychelles Sierra Leone Singapore Slovakia Slovenia Solomon Islands Somalia South Africa South Sudan Spain Sri Lanka Sudan Suriname Sweden Switzerland State of Palestine Syria Tajikistan Tanzania Thailand Timor-Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Tuvalu Uganda Ukraine United States United Arab Emirates United Kingdom Uruguay Uzbekistan Vanuatu Venezuela Vietnam Württemberg Yemen Zambia Zimbabwe Industry * Please Select Automotive, mobilty & transport Financial Services Chemical & agriculture Construction & Real Estate Consulting Education Energy Banking, insurance & FS FMCG Food Gov / Public Industry Health & lifestyle Logistics, Aero & Shipping Media & Entertainment Natural resources & mining Pharma & Biotech Retail & trade Tech & E-Commerce Telco Tourism design Information technology & services Management consulting Retail Pharmaceuticals International trade & development Professional training & coaching luxury goods & jewelry Automotive Insurance Mechanical or industrial engineering Company Size * XS - 1-10 S - 10-100 M - 100-1000 L - 1000-5000 XL - > 5000

Editable UNITE models (PowerPoint) included

Most of our models and canvases are designed to be applied! 


To help you personalize them to your exact business requirements, you can download fully editable versions of the UNITE models available (PowerPoint format)!

They are straightforward to work with, and you can directly incorporate them into your presentations as you need…thus saving countless hours of replication!

PS: did you know that you are also getting hi-res print-ready versions for your workshops?

Monthly live webinars

Each month we host our exclusive, invitation-only webinar series where one of our industry-leading experts updates our members on the latest news, progress and concepts around business strategy, innovation and digital transformation, as well as other related topics. 



You will receive the book in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

Bi-weekly live group Q&A sessions

These sessions are your opportunity to bring any questions or challenges you’re facing and receive expert guidance on the spot. 


Come and be a part of engaging discussions where your unique concerns are heard and addressed.

1x personal coaching session / month

If you are occasionally looking for a sparring partner or you need limited support, then this option will be ideal for you. Coaching sessions are 1-2 hours where we can discuss any challenge or opportunity you are currently facing.

If you need a few more hours outside of this provision, then these could be billed transparently.

Unlimited video call support! – it’s like always making the right decision!

We believe support shouldn’t be limited. Because we typically find that the occasional hour just doesn’t cut it – particularly if you and your team are in the midst of a large and complex project.

Your time with Stefan is therefore unlimited (fair usage applies) – in his function as coach and sparring partner. That does mean that you will still have to do the work – we cannot take that off you, unless you hire us as consultants. But you will get valuable strategic insight and direction to make sure you are always focusing your efforts where they will lead to the best results.

One personal coaching session / month 
+ unlimited support via e-mail & WhatsApp

We believe support shouldn’t be limited. If you generally know what you are doing but want a sparring partner to frequently raise questions to, this is the perfect choice!

In addition to your monthly 1-1 live coaching sessions with Stefan, you will also get unlimited support from him via email and WhatsApp messaging (fair usage applies). This not only allows you to get valuable strategic direction in your calls, but also gives you instant access to expert help as you work through your plans each month.



The fact that support is text-based means that we can speed up our responses to you while keeping the overall cost of support down.

Welcome gift of our book 
 “How to Create Innovation” 
 (digital + physical editions)*

As a welcome gift, you will receive the both the digital and physical version of our book “How to Create Innovation”, which covers numerous relevant resources and provides additional deep dives into our UNITE models and concepts.


The print version will be shipped out to you on sign-up. The digital version will be emailed to you, and comes in PDF and EPUB formats, ideal for your computer, Kindle, Tablet or other eReading device.

1x major workshop or 2x smaller workshops / month

1x major or 2x smaller workshops based on the UNITE models.

• Topics covered: almost any challenge under the header of #strategy, #innovation or #transformation, leveraging the UNITE models.
• Hands-On Learning: solve your challenges while learning the practical application of the UNITE models and walk away with concrete plans and tools to take your next steps.
• Industry thought leadership: facilitated by Stefan, the founder of Digital Leadership and the main author of the UNITE models, ensuring top-tier guidance and knowledge sharing.
• Collaborative approach: engage in interactive sessions that foster collaboration, idea exchange, and real-time problem-solving among peers and industry leaders.
• Continuous Improvement: Regular workshops ensure ongoing development in your organization staying ahead of industry trends and customer needs.

Access all of our UNITE models, 
 (incl. editable & print versions)

All of our Professional plans offer full access to the following:

• 6x UNITE model package downloads are included per month, if you need something in addition to these however, please let us know!
• Hi-res, print-ready versions you can use in your workshops
• Fully editable PowerPoint versions where applicable – personalize to your needs.
• Exclusive access to our vault of never-before-published strategic materials. We have much more to share – a lot of our concepts have never been published!

Exclusive access to our private UNITE community (upcoming)

We are currently in the process of launching our brand new community., we are designing our community to specifically help you:.

• Get answers to questions (“How do I …”)
• Share leading practices & knowledge
• Jointly develop new models
• Network amongst a highly qualified group of peers

Please, select the reason

Cancelling your plan will deactivate your plan after the current billing period ends. You will not be charged further, but also won’t be able to access [exclusive features/services].

• Cost-related issues
• Unsatisfied with the service
• Features I need are missing
• Switching to a different service
• Other (Please specify)

Book Your Initial Blueprint Session Now

Simply fill out the below form and book in a time for our initial session that works for you. This initial session is free, no strings attached, and is where we can discuss your Blueprint needs more in-depth before moving forward.

Stefan F. Dieffenbacher

Founder of digital leadership.

Adam D. Wisniewski

Partner for it strategy & business alignment.

Get in touch with Digital Leadership

Speak to our team today to find the best solution for your business to grow and scale.

We are here to support you across the entire lifecycle in all topics related to #digital, #innovation, #transformation and #marketing!

Stefan F. Dieffenbacher Founder of Digital Leadership

Contact Us!

Contact form, contact details, book a call.

Title, first name & last name * Email address * Phone number Please let us know how we can best support you! *

By clicking “Send”, I agree to Terms of Service and Privacy Policy.

Let’s have a conversation!

“Please be invited to reach out! We are happy to help and look forward to a first meeting!”

+41 (0) 44 562 42 24

[email protected]

Schedule Your Call With Our Team

Find a time on our calender that best suits you !

Founder and CEO of Digital Leadership

SCHEDULE YOUR INITIAL CALL

A Quick Survey!

What is the main challenge you're currently facing in your business?

You Want To Drive Change?

Let’s find the best solution for your business to grow and scale sustainably!

Let’s kick start it!

We will uncover your current business situation and goals and provide you with a bespoke solution that helps you drastically grow your business working with us.

Stefan F. Dieffenbacher, M.B.A.

Feedback about our consulting that we are proud of

Read the reviews and make sure that this is not a waste of time, but a super effective tool.

You want to drive change?

Schedule your free business assessment call with our founder.

On this call, we will uncover your current business situation and goals and talk about how to drive change and solve your need.

Choose the meeting type that applies to your needs and schedule a time to meet with someone from our team. We look forward to speaking with you soon!

Schedule Your Free Business Assessment

Schedule Your Free Business Assessment Call With Adam D. Wisniewski

Welcome to our scheduling page.

Let’s Design your Customer Experience Blueprint !

In a uniquely designed 60 or 90 minute session* , we will …

• > identify where to start with near-certainty
• > define what approach it takes to create success in your organization

Based on the Blueprinting session, you will receive a tailored blueprint that aligns with your objectives, vision and goals, ensuring that your initiative is a success from start to finish.

In this session, you will be working together with Patrick Zimmermann, Associate Partner for Customer Experience

Let’s Design your Culture & Org-Change Blueprint !

In this session, you will be working together with Dr. Andreas Rein, Partner at Digital Leadership for Culture & Org Change

Let’s Design your Innovation Blueprint !

In this session, you will be working together with Sascha Martini, Partner at Digital Leadership for Innovation and Digital Transformation

Let’s Design your Transformation Blueprint !

In this session, you will be working together with Stefan F. Dieffenbacher, Founder of Digital Leadership Stefan is a global thought leader in the innovation space

Let’s Design your IT Strategy & Business Alignment Blueprint !

In this session, you will be working together with Adam D. Wisniewski, Partner for IT Strategy & Business Alignment

Patrick Zimmermann

Sascha Martini

Dr. Andreas Rein

Write a personalized review! Log in

Create Review

What Is Corporate Strategy? The Four Key Components

What Is Corporate Strategy?

Corporate strategy refers to the overall plan or direction of an organization in pursuit of its long-term objectives. It includes defining the company's mission, vision, values, and goals, as well as identifying the markets and products it will focus on, the competitive advantages it aims to build, and the resources and capabilities it needs to achieve its objectives.

Corporate-level strategy involves developing a strategic roadmap for the organization to guide its actions. By doing so, the organization stays focused on its long-term strategic objectives while remaining agile enough to respond to changes in the business environment.

What Are The 4 Components Of Corporate Strategy?

Understanding the components of corporate strategy will help you formulate a well-thought-out strategy that’s easy to follow and execute.

Visioning involves setting the high-level direction of the organization—namely, the vision, mission, and corporate values.

Objective setting

Objective Setting   involves defining specific and measurable outcomes you want to achieve over a chosen timeframe.

Resource allocation

This is the practice of allocating human and capital resources to support objectives.

Strategic trade-offs

This is an essential part of corporate strategic planning since companies can’t always take advantage of all feasible opportunities. Leaders must learn how to determine the optimal strategic mix that will balance risks with returns.

👉 Use this free corporate strategy template to quickly start the development of your own company-level strategy.

The Corporate, Business, And Functional Level Strategies

A complete organizational strategy has three levels :

Corporate-level strategy

Corporate-level strategy is the highest level of corporate strategic planning. (We’ll dive deeper into it in this guide).

Business-level strategy

Business-level strategy connects the strategic goals of the company strategy with the needs and capacities of the business unit level.

It turns a corporate-level strategic goal into a practical strategic goal based on business-level knowledge and experience.

Functional-level strategy

Functional-level strategy refers to the specific plans and actions developed by individual departments within an organization to achieve the goals and objectives set out in the corporate-level strategy. These strategies are more detailed than corporate strategies, and they focus on the day-to-day activities of the organization.

Functional-level strategies are developed based on the company's overall goals and objectives. Their aim is to ensure that each functional area of the organization contributes to the company's success in a coordinated and strategic way. 

For example, let’s say a company has set a corporate-level goal to reduce costs. One of the functional-level strategies that the operations team can set is to streamline the supply chain to reduce the cost of inventory and raw materials. Another functional strategy would be to optimize the use of technology to reduce costs.

Corporate-Level Strategy vs. Business-Level Strategy

Corporate-level strategy and business-level strategy are two different levels of strategic planning that organizations use to achieve their goals and objectives.

Corporate-level strategy involves making decisions about the overall direction and scope of the organization. This includes deciding which industries and markets to compete in, how to allocate resources across different business units or product lines, and how to diversify the company's portfolio of products or services. This strategy level focuses on long-term goals and objectives and often involves mergers and acquisitions, joint ventures, vertical integration, or other strategic alliances.

Business-level strategy , on the other hand, focuses on how individual business units or product lines will compete in their respective markets. This involves making decisions about product differentiation, pricing, marketing, and resource allocation to achieve specific goals and objectives. This strategy level deals with shorter-term goals and objectives, often involving product development, marketing campaigns, and operational improvements.

Both levels of strategy are crucial for organizational success and should be aligned with each other. 

📚 Read more: The 7 Best Business Strategy Examples I've Ever Seen 

How The 3 Strategy Levels Relate To Each Other

The three levels of strategy are interdependent and must be aligned to achieve an organization's overall goals and objectives.

For example, a corporate-level strategy of diversifying a company's portfolio by acquiring a new business unit would require a business-level strategy to integrate the new business and align it with the company's existing operations. The functional-level strategy would then focus on optimizing processes, allocating resources, and developing capabilities to support the new business unit's operations and ensure its success.

Understanding how the three strategy levels communicate helps you build a solid strategic plan .

What Are The Benefits Of A Corporate-Level Strategy?

The benefits of a well-defined corporate strategy for an organization increase as the organization scales . It’s possible for small or even medium-sized businesses to get by without investing time in developing their corporate strategy. However, as the needs of an organization grow, it becomes increasingly necessary to develop the strategic planning process in a way that reflects the complexity of that organization.

In the end, corporate strategy benefits any organization, regardless of size .

The three main benefits of having a solid corporate strategy are:

1. Provides strategic direction

By implementing a corporate strategic plan, an organization can establish its desired direction and provide clear guidance to leaders, stakeholders, and employees on how they prioritize decisions, making strategy execution and goal achievement much easier.

2. Helps you stay flexible and adapt when needed

In a dynamic world, organizations need to keep pace with changes as they happen.

By continually defining corporate strategies and strategic goals in relation to opportunities or threats as they appear, your organization will be able to consistently perform optimally.

3. Improves decision making

Without clearly defined strategies at a corporate level, business, and functional level units will perform sub-optimally.

The abstract level of decision-making at the corporate level will translate to better results at other decision-making levels and help employees feel that their organization has a clear direction and purpose.

📚 Recommended read:   Strategic Control Simplified: A 6-Step Process And Tools

The Common Problem With Corporate Strategy

One of the most common problems with strategy, especially corporate strategy, is that it gets stuck in the boardroom. Leaders are the experts, they’ve climbed the ropes, and they have the scars to prove it. It is obvious that they are best suited to make strategic decisions and put together a plan that steers the company in the right direction. 

That statement seems reasonable, but it contains a lie.

Creating a static PowerPoint document is not a strategy, no matter how long or beautiful it is. As Mike Lardner, former Director of Corporate Strategy at Whirlpool points out in Cascade’s state of strategy report : "The main problem with the strategy is that it's usually not even strategy. It's just the first pass at next year's budget!"

There is an annual cycle of secret meetings that exhaust resources and no one can figure out where, why, or what to do. Often, the strategy is left in a PowerPoint until the next year, and it's so manual to synthesize that it's not even updated or tracked on regular basis.

Types Of Corporate Strategy And Examples 

Your corporate strategy must reflect an optimal approach that responds to the needs and the environment of your business. Thus, it’s helpful to divide corporate strategy into four classifications based on external and internal factors.

Growth strategies

These are strategies that focus on a company’s growth and might include entering new markets, increasing or diversifying existing ones, or using forward or backward integration to take advantage of economies of scale.

Growth strategies are typical with most tech companies like Facebook ( Meta ), Google, and Amazon , which consistently take advantage of new opportunities. 

When Facebook launched in 2004, it was a small social media network among several competitors. Using a market penetration growth strategy aimed at Harvard college students and eventually a tech acquisition strategy that purchased emerging technology, Facebook grew from that small campus social network into the ubiquitous company it is today.

Stability strategies

These are designed to consolidate an organization's current position, with an eye toward creating a strategic environment that will provide greater flexibility for the future employment of growth or retrenchment strategies.

Stability strategies are more conservative strategies, focused on preserving profit, reducing costs, and investigating future strategic possibilities.

Steel Authority of India adopted a stability strategy focused on increasing efficiency rather than increasing the number of plants. This move helped address the over-capacity in the industry and retain the company’s position as the third-fastest growing steel producer in the world.

Retrenchment strategies

These are a response to unprofitable or damaging elements of a business or organization, such as eliminating unprofitable assets or product lines.

General Motors (GM) , once the world’s largest automaker, started implementing retrenchment strategies as it pulled out its brands from major global markets like Russia, India, and Western Europe. Declining sales and profitability were the main culprits as its competitors consistently took the top sales spots. 

📚 Recommended read: Strategy study: The Journey of General Motors 

Combination Strategy

Sometimes, organizations combine the above-mentioned strategies even if they appear contradictory. 

For example, a company may utilize a stability and retrenchment strategy to keep profits growing while preserving capital. Or they can continue taking risks to pursue growth while keeping certain portions of the enterprise stable. 

A combination strategy is useful when organizations are large and operate in complex environments, such as having several enterprises operating in different industries with different needs. 

For example, McDonald’s continues to pursue growth by expanding to new markets worldwide while maintaining a profitable core menu and focusing on improving operational efficiency. 

Another example is the move by Hewlett-Packard to split the company into two in order to pursue a stability and growth strategy at once. HP Inc., the stagnant arm that sells personal computers and printers, focuses on a stability strategy to maintain profitability. Meanwhile, HPE, the exciting business that sells industrial-grade server computers to enterprises, focuses on a growth strategy as it taps an underserved market segment. 

📚 Want to study strategies of leading global companies, including Heineken, Coca-Cola, and Unilever? Click here to check out our Strategy Factory with 100+ strategy studies. 

What Should My Corporate Strategy Model Look Like?

There are a number of different models you can apply to the strategic planning process, each with its own merits. We’re going to show you how to build your corporate strategy model based on our tested and proven strategic planning model—the Cascade model, used by +20,000 teams worldwide.

Corporate strategy planning is the highest level of strategic planning within a business or organization and must take into account a huge number of variables.

1. Defining a vision

Reducing complexity is a must . The basis for corporate planning is defining an abstract vision or overarching goal based on the current organization and its environment.

The vision will provide a point of reference for your mission, and the mission will serve as a benchmark for measuring goals and evaluating strategies.

Follow our guide for an in-depth explanation of the process of writing a vision statement . 

2. Describe your company’s values

Your company’s vision statement is a destination. Company values describe how you will arrive at this destination.

The values that you outline should be clear, concise, and, above all, real. To get a good sense of how to define your company values, read our guide .

3. Choose focus areas

Think of focus areas as the foundation for your corporate planning. They are strategic priorities that your organization will be focusing on within a given timeframe. 

4. Define objectives

Once you’ve defined a clear vision and selected your focus areas, you must outline the strategic objectives .

These objectives will represent a more concrete example of what you want to achieve, with stated deadlines and milestones.

5. Establish KPIs

The corporate planning process ends with the definition of KPIs that will allow corporate strategists to track and adjust the strategic objectives based on results.

📚 Dive deeper into each element with this comprehensive guide on how to write a strategic plan . 

Get A Blueprint For Corporate Strategic Planning

Corporate strategic planning gives your company the essential conceptual tools to succeed in competitive markets. Taking the time to plan a well-structured corporate strategy will quickly yield benefits that are quantifiable and provide insights into your operations .

Get your free corporate strategy template to follow a structured approach and create a highly effective corporate strategic plan that keeps everyone aligned with the business objectives. 

Popular articles

Porter's Five Forces: Complete Guide, Examples & Template

Viva Goals Vs. Cascade: Goal Management Vs. Strategy Execution

What Is A Maturity Model? Overview, Examples + Free Assessment

How To Implement The Balanced Scorecard Framework (With Examples)

Your toolkit for strategy success.

Corporate Level Strategy: Definition, Types & Examples

Setting the right business strategies can be daunting, especially to small business owners, because these strategies determine your company’s success.

It’s challenging to get familiar with different levels and types of strategies, as well as how to tie them together.

When planning, the first level of strategy you need to think about is corporate level strategy. It’ll affect all other decisions of your business, so it’s best you understand what it is and how it works.

In this post, we’ll talk about what corporate-level strategy is, its position among different levels of business strategies, its characteristics and benefits, and some examples to help you understand it further.

3 levels of business strategy

Before diving deep into the corporate-level strategy, let’s go through 3 levels of business strategies because they are related to each other.

Corporate level strategy

Corporate level strategy is the foundation of your business. It defines the purpose of your company and affects all the other strategies of your business.

The most common types of corporate-level strategies include:

Expansion/Growth

Retrenchment, combination.

For example, if your corporate-level strategy is to enter a new market, you’re planning for growth. All the other strategies and actions of your business then have to serve this big strategy.

Business level strategy

Business level strategy determines the competitive advantage that enables your business to outperform competitors.

Strategies at this level are more focused and specific than corporate-level strategies.

These strategies provide answers to how you can achieve what you want to achieve—whether through product development, competitive price, or customer intimacy.

2 common types of business-level strategy include:

• Cost Leadership
• Differentiation

Let’s continue with the above example. If your corporate-level strategy is entering a new market, then your business-level strategies may include:

• Expand brand exposure to new customer segments
• Increase marketing budget
• Introduce a new product feature that matches the new market demands

Functional level strategy

Functional level strategy consists of more specific strategies, goals, and actions for different teams/departments of your business. It determines the day-to-day operations of your company.

Coming back to the entering-a-new-market example, your functional-level strategies can be:

• Marketing: Plan and implement a social media marketing campaign targeting the new customer segments
• R&D: Research and develop a new product feature that appeals to new target customers

Characteristics of corporate level strategy

Corporate-level strategies are set by the highest-level people in a business. Then, business-level and functional-level strategies are planned accordingly.

Business owners, founders, board members, managers, and executives should work closely with employees and middle management to make sure the overall strategies aren’t too far-fetched and unrealistic.

Overarching

Corporate-level strategies are broad enough to affect all the other areas of your business. They can be scaling up, expanding to a new market, or cutting costs to maintain the stability of your company.

These strategies help everyone in your business strive for the same goals and move forward in the same direction.

Corporate level strategies are often set for the long term. They may take a long time and resources to implement.

Complicated

These strategies are complicated because they tie together all the smaller strategies, goals, and actions of your business.

Because corporate-level strategies are broad, they can’t be certain. They are affected by different aspects, including the performance of each department in your company, the market, your competitors, etc.

The changes in the market demands and every industry require your strategies to be flexible enough so that your company can adapt to different circumstances.

This means you can change your corporate-level strategies, as long as they’re appropriate, instead of thinking of them as something so concrete and set-in-stone.

Benefits of corporate level strategy

Setting and implementing corporate-level strategies seem to be difficult because they are broad and affect everything you do.

But your business needs them to develop in the right direction. What other benefits can you get from setting a corporate-level strategy?

Increases efficiency in business operations

Corporate-level strategy paves the way for other smaller strategies to be planned and carried out.

Having a general strategy in mind, you can create specific roadmaps and tactics to achieve your business goals.

Plus, every department knows what outcomes they’re striving for and steps they can take to reach those outcomes.

Increases the flexibility of your business

If you don’t have any plans and goals in place, everything will be done intuitively and hectically. Having clear strategies allows your business to be well-prepared for future changes. You can always adjust your strategies to keep up with the market demands and industry changes.

Increases market share

While setting a corporate-level strategy, you’ll find out more about market changes, your products/services, your customer segments, etc.

Knowing about these aspects and make changes related to them will give you powerful insights into increasing your market share and finally achieve it.

Increases profitability

When you’re actively trying to increase your market share and business efficiency, you’re also working towards increasing your profitability.

You might not see positive outcomes right away, but as long as you set the right goals and take action persistently, you’ll see the results eventually.

Increases durability

A corporate-level strategy is the purpose and foundation of your business operations. It helps you focus on the right aspect and stay durable in any competitive industry you’re in.

With a set of goals, plans, and tactics in place, you can easily make adjustments and adapt well to unexpected circumstances.

Types of corporate level strategy

Corporate-level strategies often belong to these 4 main types: expansion (growth), stability, retrenchment, and combination. Let’s quickly go through each of them.

The expansion strategy is helpful if you’re planning to reach new customers, expand your workforce, and introduce new products/services.

Different types of expansion strategies include:

Diversification

This strategy is suitable for businesses struggling in their current markets and with their current products. To widen exposure, reach new customers, and meet growth targets, they can enter new markets or add new products:

• Enter a new market with new products/services related to what you’re offering ( concentric diversification )
• Add new products/services that are unrelated to what you’re offering ( horizontal diversification ),
• Enter a new market with products/services unrelated to what you’re offering ( conglomerate diversification ).

Concentration

Focus on participation in a certain market in order to compete successfully in that market.

Forward or backward integration

Forward integration : You go forward in the supply chain and take the role of distributors —storing and distributing products to retailers or users.

Backward integration : You go backward in the supply chain and take the role of suppliers —producing the components of your main products, etc. For example, a restaurant grows its own ingredients.

Horizontal integration

This strategy is used when your business merges with another company in the same vertical.

In a stability strategy, businesses maintain the size and level of their current business activities. This strategy is often used when:

• the industry is slowing down
• waiting for growth opportunities
• not wanting to take risks
• testing the waters before deciding on a specific strategy
• wanting to maintain the relationships between your company and your existing customers.

3 common types of stability strategy include:

Increase profits by cutting costs and expenses, adjusting pricing, selling stocks and bonds, etc.

Maintain what you’re doing, but still prepare for growth or retrenchement.

Investigation

Test the waters to see which strategy fits—expansion or retrenchment.

The retrenchment strategy helps you maintain your business’ cash flow and stay in business, especially in times of crisis. Below are 3 types of retrenchment strategies:

In this strategy, businesses sell assets that perform poorly—whether it’s a business unit, or a part of the business—to raise capital for the main products/services.

Businesses often use this strategy when they need to finance future purchases and investments, or to get out of industries that aren’t suitable for them.

This strategy requires your company to improve existing products by improving the quality control and testing processes. Or you need to eliminate the weaknesses that are holding your business back.

Liquidation

This strategy is the last resort—closing your business. And we all don’t want this to happen.

This strategy is a combination of the 3 strategies above. It’s used when you want to maintain your company’s presence and performance, while grabbing growth opportunities.

Corporate level strategy can be broad and overarching, making it sound subtle and complicated to business owners.

We hope this post will help you understand what this level of strategy is about and start creating smart strategies for your business.

Read more about the next level of strategy— business-level strategy .

The Camelo Team talks to and works with team leaders, business owners, managers, and workers to write articles that help running a business easier.

Similar Posts

5 Work-Life Balance Tips for Small Business Owners

As a small or medium-sized business owner, it can be challenging to find time for anything. Even in your downtime,…

On Pursuing Telemedicine Careers: How Can You Navigate Through a Flexible Medical Practice?

Healthcare professionals are used to working long shifts, but this culture is changing thanks to the rise of telehealth services. Entrepreneur…

How to Manage Hospitality Labor Costs in 3 Steps

If you’re managing a business in the service industry, you know that hospitality labor costs can take a big chunk…

Top 7 Scheduling Software for Cleaning Business for 2024

Feeling overwhelmed by the myriad options of employee scheduling software for your cleaning business? We get it. The frustration of…

36 Types of Cleaning Services to Offer & Make Profits

Choosing what types of cleaning services to offer is crucial when you’re starting a cleaning business. Each has pros and…

How to Start a Home Care Business in 2024

Starting a home care business can be rewarding, both personally and professionally. You’ll help improve the lives of seniors and…

9.4 Strategic Objectives and Levels of Strategy

• What are strategic objectives, levels of strategy, and a grand strategy? How are they related?

Once a strategic analysis has been completed, the next step in the strategy process is to establish strategic objectives. At this point, the manager has decided why the company exists and how it will try to fulfill its mission. Strategic analysis has provided information about customer preferences, competitors, and the firm’s resources and capabilities. Now it is time to start planning for success.

Strategic objectives

Strategic objectives are the big-picture goals for the company: they describe what the company will do to try to fulfill its mission. Strategic objectives are usually some sort of performance goal—for example, to launch a new product, increase profitability, or grow market share for the company’s product.

Exhibit 9.6 shows what might be some strategic objectives for Disney. To make people happy (Disney’s vision), Disney focuses on entertainment (its mission). Top executives then decide each year what entertainment products the company will offer. Because Disney is a large corporation (more on that shortly), it has a variety of resources available to create entertainment products to offer. For example, they may decide to release three movies this year, as well as build a new theme park and create five new shows for their television network. In reality, the strategic objectives at Disney are much more complex than this, because some of these choices involve long-term efforts (they cannot build a theme park in one year).

Levels of Strategies

Once a firm has set its objectives, it then must turn to the question of how it will achieve them. A business-level strategy is the framework a firm uses to organize its activities, and it is developed by the firm’s top managers. Examples of business-level strategies include cost leadership and differentiation. These strategies are pursued by businesses with a single product or a range of products.

For example, imagine that you own a coffee shop. You aren’t Starbucks—you are a local shop in your neighborhood, and you run it yourself. You have employees, but you are the manager, owner, and all-around decision maker. While developing your vision and mission statements, you have already made some basic decisions about how your shop will operate. For example, you have chosen to either offer quick, inexpensive coffee (cost leadership) or a full-service coffee experience (differentiation). That decision impacts whether or not you choose premium or discount suppliers, how your shop is decorated, and how many employees you have to offer attention (service) to your customers. A business-level strategy guides a company in how they approach the activities in the value chain. Operations, for example, would focus on efficiency for a cost leader and focus on adding value for a differentiator.

When you develop strategic objectives for your shop, you will decide whether or not you want to try to attract more customers (grow), maintain your business at its current level, or shrink your business (perhaps you feel you don’t have enough time to spend with your family). If you decide that your objective is to grow, for example, you should set a specific target, say, to grow revenue by 10%. Once you set that specific objective, you can exhibit out exactly what business-level actions you will need to take to reach that target.

Even if a business is much larger than a local coffee shop, the strategic objectives pursued by these larger companies are not significantly different in concept. Large companies like Nike or Apple, which have many different business units, develop strategies at several levels. Each individual business unit (say Nike Basketball) will have a manager who decides the objectives for that unit, just as in the coffee shop example. However, the company as a whole will have a chief executive officer (the top manager for the company) who develops strategy for the entire corporation. Corporate strategy is the broadest level of strategy, and is concerned with decisions about growing, maintaining, or shrinking very large companies. At this level, business-level strategy activities, such as an advertising campaign to attract new customers for a single product line, are not going to be enough to significantly impact the company as a whole.

The corporate CEO essentially manages a group of businesses (unless the firm operates as one business unit) and develops strategies to create success for the overall group. Think of the group of businesses as an investment portfolio: investors try to have a diverse set of investments to spread risk and maximize the performance of the overall portfolio. On any given day, an investment that isn’t doing so well should be offset by one that is doing well. Corporate strategy tries to achieve the same thing, and CEOs have to weigh the pros and cons of each business unit and how it is contributing to the success of the overall corporation. For example, a company that has business units that do well in the winter (ski resorts) will try to also have business units that will perform in the summer (swimming pools) to reduce the risk of having periods of low revenue. One tool that corporate strategists use to understand how each of their businesses contributes to the corporation as a whole is the BCG Matrix , illustrated in Exhibit 9.7 .

The BCG Matrix gives managers a quick picture of which business units are doing well and which are not. The tool has recommendations for businesses in each quadrant—for example, a business in the dog quadrant should be sold or closed. Cash cows provide income to the corporation, and stars provide growth. A CEO is always trying to balance the group of business units throughout the quadrants to maximize overall corporate performance. Note that the BCG Matrix is not applicable for firm’s that operate in one business unit.

In order to achieve the scale of growth necessary to meet corporate strategic objectives, a CEO must find ways to develop entirely new business units or reach brand-new markets. For example, for Walmart to grow their 2017 revenue by 5%, they would need to add $25 billion in new revenue. That’s more revenue than opening some new stores could generate. CEOs have several ways of growing their corporations, as shown in Table 9.1 .

In Walmart’s case, for example, growing has meant expanding their online capabilities to better compete with Amazon. They have acquired new companies to support this goal, including Shoebuy, Jet, ModCloth, and Flipkart to reach customers and increase their online product selection, as well as Parcel, to build delivery services. 6

International strategy is similar to corporate strategy because it is concerned with the large-scale actions involved in entering a brand-new geographic market. For companies operating internationally, strategic questions focus on how to successfully enter and compete in a foreign market. International strategy can combine with business-level or corporate-level strategies because a growth strategy at either scale can involve entering new markets in order to reach new customers.

The Grand Strategy

At all three levels, companies choose a grand strategy in response to the first question they should ask themselves: does the firm want to grow, strive for stability, or take a defensive position in the marketplace? Often, the choice of a grand strategy is based on conditions in the business environment because firms generally want to grow unless something (like a recession) makes that difficult. Note that a grand strategy and a corporate strategy can overlap significantly.

• A growth strategy involves developing plans to increase the size of the firm in terms of revenue, market share, or geographic reach (often a combination of these, as they can overlap significantly). Walmart is implementing a growth strategy with the acquisitions discussed in the corporate strategy section.
• A stability strategy is a strategy for a company to maintain its current income, market share, or geographic reach. A firm usually works to maintain a stable position when the alternative is to lose ground in one of those categories, for example because of competition or economic factors. In today’s business environment, publicly held firms rarely aim solely to maintain the status quo, because shareholders and the stock market reward firm growth.
• Firms pursue defensive strategies in the face of challenges. A company that is struggling may decide to shrink its operations to reduce costs in order to survive, for example. A company facing strong new competition may have to radically rethink its product offerings or pricing in order not to lose too much market share to the newcomer. A technological innovation may make a company’s products obsolete (or at least less attractive), forcing it to work to catch up to the new technology. Ford made a defensive decision when it recently decided to stop selling sedans in the United States because of slow sales compared to trucks and SUVs.

Operationalizing a Grand Strategy

A firm operationalizes its choice of a grand strategy differently at each level of strategy (business, corporate, international). At the business level, a growth strategy means that the manager will have to develop ways to grow the business by developing new products or expanding the customer base for existing products, either at home or abroad. Expanding a corporation can take a wider variety of forms. The CEO can develop new businesses, expand to new countries, acquire or merge with competitors, or perform previously outsourced activities. International expansion can be accomplished by exporting goods to another country or by acquiring a similar firm in another country to establish the company’s presence in that country. In all three of these cases, the grand strategy would be growth, and the strategic objectives could be expressed in terms of revenue growth, profit growth, market share growth, or even share price growth. Table 9.1 outlines how a grand strategy can be used to develop specific company actions.

Concept Check

• What is the difference between strategic objectives and a strategy?
• Describe the three levels of strategy and what a manager developing strategy at each level is concerned with.
• What is a grand strategy, and how does it relate to strategic objectives and the three levels of strategy?
• What are the three grand strategies, and why would firms pursue each of them?

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-management/pages/1-introduction

• Authors: David S. Bright, Anastasia H. Cortes
• Publisher/website: OpenStax
• Book title: Principles of Management
• Publication date: Mar 20, 2019
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-management/pages/1-introduction
• Section URL: https://openstax.org/books/principles-management/pages/9-4-strategic-objectives-and-levels-of-strategy

© Jan 9, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

Chapter 8: Selecting Corporate-Level Strategies

Learning Objectives

After reading this chapter, you should be able to understand and answer the following questions:

• Why might a firm concentrate on a single industry?
• What is vertical integration and what benefits can it provide?
• What are the two types of diversification and when should they be used?
• Why and how might a firm retrench or restructure?
• What is portfolio planning and why is it useful?

What’s flying at Bombardier?

When you think of Bombardier, you might think of Ski-Doos and Sea-Doos. And you’d be partly right.  But what did the company do in the thirty years between introduction of those two products?

In the 1920s and 1930s, travel on the snowy roads of rural Quebec was a by horse-drawn sleighs, since there was little or no snow plowing. Fifteen-year-old Joseph-Armand Bombardier, a skilled and avid mechanic, built his first prototype snowmobile prototype, a small surface skimming contraption with a propeller. By the mid-1930s, he had developed the seven-passenger B7 “snow vehicle,” something we might now recognize as an early “snow cat.” He followed up with a 12-passenger B12 snowmobile and a series of other snow-going vehicles for ambulance, freight transport, mail delivery, and school transportation. Bombardier also developed a truck with interchangeable skis and wheels for Canada’s lumber industry.

As we now know, a the new industry of snowmobiling was created. By 1959, the Ski-Doo was launched, now joined by sister brands Lynx snowmobiles, ATVs, Sea-Doo watercraft, and Evinrude outboard engines. Looking forward, the Bombardier company bought a manufacturer of motor scooters and trams, and its subsidiary, the engine manufacturer ROTAX, marked Bombardier’s entry into the railway-car business.

However, the 1970s brought one of the first oil crises to North America, where high petroleum prices resulted in consumer demand for energy-efficient cars, and sales of Ski-Doos plummeted. Bombardier cut its snowmobile production in half and redeployed its excess manufacturing capacity to build railway cars. Bombardier was the successful bidder to manufacture 423 cars for Montreal’s subway system. Bombardier also purchased a majority stake in a locomotive and diesel engine manufacturer in Montreal, adding LRC (light rapid comfortable) technology to its of rail transit expertise.

Bombardier diversified into the aerospace sector in the 1980s through a series of purchases, including the de Havilland division of Boeing, based in Canada.

The economic boom of the late 1980s propelled the launch of the Sea-Doo watercraft and later launched the ATV, an all-terrain vehicle designed for two riders.

At the end of fiscal year 2013, Bombardier had revenues of $8.8 billion and an order backlog of $32.4 billion, a presence in 40 countries, and 38,500 employees.

When dealing with corporate-level strategy, executives seek answers to a key question: In what industry or industries should our firm compete? The executives in charge of a firm such as Bombardier Inc. must decide whether to remain within their present domains or venture into new ones. In Bombardier’s case, the firm has expanded from its original business (transportation over snow) into railway transportation, aerospace, and several other industries. In contrast, many firms never expand beyond their initial choice of industry (Bombardier Inc., 2014).

Bombardier Inc. (2014, February).  Bombardier Transportation:  Profit, Strategy and Market .   Retrieved from http://ir.bombardier.com/images/ckeditor/staging/upload/ckeditor/files/BT%20Profile%20Strategy%20and%20Market%20FEB%202014(1).pdf

Media Attributions

• Bombardier_MX_Z-Rev_Ski-Doo_(Die_Another_Day)_front-left_National_Motor_Museum,_Beaulieu © Karen Roe is licensed under a CC BY (Attribution) license

Mastering Strategic Management - 1st Canadian Edition Copyright © 2014 by Janice Edwards is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Share This Book

• Certifications
• Associate Business Strategy Professional
• Senior Business Strategy Professional
• Examination
• Partnership
• For Academic Affiliation
• For Training Companies
• For Corporates
• Help Center
• Associate Business Strategy Professional (ABSP™)
• Senior Business Strategy Professional (SBSP™)
• Certification Process
• TSI Certification Examination
• Get your Institution TSI Affiliated
• Become a Corporate Education Partner
• Become a Strategy Educator
• Frequently Asked Questions

What is Business Strategy? Definition, Importance, Levels, and Examples

Business strategy is the battle plan for a better future. - Patrick Dixon

Scaling up a business without a clear strategy is like captaining a ship without a rudder. The success of any business depends on the strategy that one follows. The business strategy establishes the needs of the business. Business strategy plays an important role for businesses of all sizes and entrepreneurs. It sets the direction of the organization and helps to create goals to aim towards.

What is Business Strategy?

Business strategy is defined as the course of action or set of decisions that support entrepreneurs in achieving certain business goals. It is a master plan that outlines the direction the organization intends to make, the actions it will undertake, and the resources it will give to attain certain competitive benefits and drive sustainable growth. It involves a combination of decisions, actions, and resource allocation that positions an organization in its industry or market.

Why is a Business Strategy important?

Business Strategy plays a crucial role in guiding a firm’s growth, competitiveness, and success. It offers a roadmap for decision-making, resource providing, and adaptation to transforming circumstances, ensuring that the firm stays agile, focused, and well-prepared to achieve its goals successfully. It is carefully planned and flexibly designed with the purpose of:

• Achieving effectiveness
• Perceiving and utilizing opportunities
• Mobilizing resources
• Securing an advantageous position
• Meeting the challenges and threats
• Directing efforts, behavior and
• Gaining command over the situation

What is the Difference between Business Strategy & Business Plan & Business Model

Business Strategy, Business Plan, and Business Model are three distinct elements that offer various purposes in the world of business. They are vital for the success and sustainability of a business, and they are interconnected, with slight changes which are often confused by several aspiring business strategists , especially during their interviews. Here's a breakdown of the important differences between these:

Levels of Business Strategy

Effective strategic management consists of coordination and alignment across various levels of strategy to achieve the organization's long-term goals and competitive advantage. Business strategy can be categorized into different levels depending on its scope, focus, and the organizational hierarchy at which it functions.

The three primary levels of business strategy are:

• Corporate level strategy Corporate level strategy is a long-range, action-oriented, integrated, and comprehensive plan, which is formulated by the top management of a company. It is very helpful to ascertain business lines, expansion, growth, takeovers and mergers, diversification , integration, and the latest fields for investment.
• Business level strategy The strategies that relate to a specific business are known as business-level strategies. It is developed by the general managers, who convert mission and vision into concrete, clear, and result-driven strategies. It acts like a blueprint for the total business.
• Functional level strategy Developed by the first-line managers or supervisors, the functional level strategy involves decision-making at the operational level concerning functional areas such as marketing, production, human resources, research and development, finance, and so on.

How to Implement a Successful Business Strategy?

A business strategist feels that it is tough to ideate any plan in a few hours. It requires a step-by-step procedure to be associated with completing a SWOT analysis . Here are the top steps that can be considered to build the best business strategies and execute them with precision:

• Understand the targets One of the clearest challenges for growth is poor targeting. Clear target markets offer an organization the ability to create an integrated sales and marketing approach, where marketing enables sales productivity. Sales and marketing business plan gets executed more efficiently if the targets are fixed in a proper way.
• Outline the tactics A successful business strategy is made up of several various tactics, including both online and offline options. The goals, target audience, and industry factor into this decision. For instance, if the target audience is young, focusing on social media is more beneficial as this is primarily where this group consumes content. If the industry is product-based (for instance, jewelry designing), then using a more visual platform would better showcase the products. To be most effective, one must choose which methods are right for the business. Once the selection of tactics is done, list them in the plan and determine how they’ll help to reach the goals.
• Think long term In the scope of constant change, planning the horizons is usually shorter than it can be. However, only thinking quarter to quarter is a trap that may rob organizations of their ability to see around the bend. Best-in-class organizations create processes designed for a series of financial and non-financial metrics to treat strategy as an annual cycle rather than a one-time, static event.
• Create a timeline Time is precious mainly when it is about the business. Based on the goals and objectives one can set for the business. Creating a timeline that will define what tasks can be completed and when they can be completed. It is highly advisable to allocate extra time for unexpected events that may delay some of the goals.
• Focus on growth A thriving organization is a growing organization. It is only through growth that the firms can afford to invest in aspects such as technology, the best staff, and the latest tools. The business strategy should identify the segments where an organization will grow and in what proportion.
• Have a budget plan Creating a budget for the business strategy can inform the efforts by determining what can be done and cannot be. Choosing the most cost-effective options for the business ensures the success of the overall business strategy. This doesn’t have to limit the options. Paid advertising on social media and search engines gives access to manage budgets well.
• Make fact-based decisions Several executives often complain about a lack of fruitful data, but they consistently find information that is useful in the formation of business strategy. The business has a set of values that guides it. Making fact-based decisions will outline the values and ensure that the people who interact with the business are aware of them. It will also ease the message that reflects on the brand honestly so it can actively demonstrate the values outlined in the mission statement through the interactions with clients.
• Invest in pre-work Always allocate time to do proper pre-work so that one can be up to date. It is better to conduct proper end-to-end research and prepare relevant information in advance of the business strategy meetings. The goals and needs will change over time. Ideally, it is important to revisit the business plan every annum to make adjustments as needed. Follow industry news and trends that can add to the existing strategy.
• Execute well and measure results Measuring the effectiveness of the business strategy will inform the current plan and future efforts. Always be sure to track and measure the business so these measurements are effective. Set up a corporate calendar to enhance the productive meetings, and also to form a performance management cycle. One should write the marketing plan with this growth in mind so they can measure it. The execution of strategic planning needs discipline, and it must be taken care of by the senior executives to promote processes that keep the team focused.

Examples of Business Strategy

Hubspot developed and executed a perfect business strategy where it created a market that didn’t even exist – inbound marketing. It created an online resource guide explaining the limitations of interruption marketing and informing about the advantages of inbound marketing. The organizations even offered free courses to help the target audience understand its offering better.

Apple Inc. differentiated its Smartphone operating system iOS by making it simple as compared to Android. This differentiated it and built its followership. The organization has been following a similar business strategy for its other products as well.

Wrapping up

Establishing the business strategy keeps the business goals organized and focused, saving valuable time and money. With the increase in the competition, the demand for business strategy is becoming apparent and there is a tremendous increase in the types of business strategies used by the businesses.

Recent Posts

How Data Analytics Can Revolutionize Your Business - A Strategist's Guide

Download this Strategist's Guide to empower yourself with resourceful insights:

• Roadblocks to Data Usage
• Advantages that Data Analytics offer for businesses
• Elements of a Data Analytics Strategy
• Top reasons why businesses must adopt a Data Analytics Strategy
• Case studies, Scenarios, and more

CredBadge™ is a proprietary, secure, digital badging platform that provides for seamless authentication and verification of credentials across digital media worldwide.

CredBadge™ powered credentials ensure that professionals can showcase and verify their qualifications and credentials across all digital platforms, and at any time, across the planet.

Verify A Credential

Please enter the License Number/Unique Credential Code of the certificant. Results will be displayed if the person holds an active credential from TSI.

Stay Informed!

Keep yourself informed on the latest updates and information about business strategy by subscribing to our newsletter.

Start Your Journey with The Strategy Institute by Creating Your myTSI Account Today.

• Manage your professional profile conveniently.
• Manage your credentials anytime.
• Share your experiences and ideas with The Strategy Institute.

Account Login

• Remember Password
• Forgot Password?

Forgot Password

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

strategy of the Nestle Company

Related Papers

Anirudh Sharma

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

Pardon Our Interruption

As you were browsing something about your browser made us think you were a bot. There are a few reasons this might happen:

• You've disabled JavaScript in your web browser.
• You're a power user moving through this website with super-human speed.
• You've disabled cookies in your web browser.
• A third-party browser plugin, such as Ghostery or NoScript, is preventing JavaScript from running. Additional information is available in this support article .

To regain access, please make sure that cookies and JavaScript are enabled before reloading the page.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

The High Cost of Misaligned Business and Analytics Goals

• Preethika Sainam,
• Seigyoung Auh,
• Richard Ettenson,
• Bulent Menguc

Findings from research on more than 300 companies undergoing data and analytics transformations.

How and where do companies’ investments in new and improved data and analytic capabilities contribute to tangible business benefits like profitability and growth? Should they invest in talent? Technology? Culture? According to new research, the degree of alignment between business goals and analytics capabilities is among the most important factors. While companies that are early in their analytics journey will see value creation even with significant internal misalignment, at higher levels of data maturity aligned companies find that analytics capabilities create significantly more value across growth, financial, and customer KPIs.

Business leaders are feeling acute pressure to ramp up their company’s data and analytics capabilities — and fast — or risk falling behind more data-savvy competitors. If only the path to success were that straightforward! In our previous research, we found that capitalizing on data and analytics requires creating a data culture, obtaining senior leadership commitment, acquiring data and analytics skills and competencies, as well as empowering employees. And each of these dimensions is necessary just to start the analytics journey.

• PS Preethika Sainam is an Assistant Professor of Global Marketing at Thunderbird School of Global Management, Arizona State University.
• SA Seigyoung Auh is Professor of Global Marketing at Thunderbird School of Global Management, Arizona State University, and Research Faculty at the Center for Services Leadership at the WP Carey School of Business, Arizona State University.
• RE Richard Ettenson is Professor and Keickhefer Fellow in Global Marketing and Brand Strategy, The Thunderbird School of Global Management, Arizona State University .
• BM Bulent Menguc is a Professor of Marketing at the Leeds University Business School in the U.K.

Partner Center

Bitcoin is close to breaching a key support level that could trigger another 15% slide

• Bitcoin's 16% sell-off this month is testing a key support level at around $60,000.
• This support level is bolstered by Bitcoin's 200-day moving average of just under $58,000.
• A break below $60,000 could lead to a 15% decline to the next support level at $51,500.

The steady decline in bitcoin this month has the cryptocurrency testing a key support level that could ultimately give way to a more painful sell-off.

Bitcoin dropped 4% on Monday and is down 16% since its June 7 high of nearly $72,000, hitting an intra-day low of about $60,000 on Monday.

According to Fairlead Strategies founder Katie Stockton, $60,000 represents a key line in the sand that should act as support for the price of the world's biggest cryptocurrency.

But if it doesn't, and bitcoin decisively breaks below $60,000, that suggests the token could continue its descent to its next support level at around $51,500.

"Support is now bolstered by the 200-day MA, giving it more significance," Stockton said in a note to clients on Monday.

Bitcoin's rising 200-day moving average is at just under $58,000.

"There are no 'Buy' signals, so we would await support discovery in bitcoin. Should a breakdown occur, it would put next support near $51,500," Stockton said.

A further decline to $51,500 would represent potential downside of about 15% from current levels, and it would represent a decline of 30% from its record-high of nearly $74,000 reached in March.

The latest sell-off in bitcoin has also rang alarm bells for the broader stock market, according to one Wall Street analyst.

"Recently the weakening of bitcoin signals an imminent S&P 500 summer correction and consolidation phase," Stifel strategist Barry Bannister said last week.

Check out Business Insider's picks for best cryptocurrency exchanges

• Main content

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Read our privacy policy

SEARCH HISTORY

• Media Center

Huawei's Dang Wenshuan: Autonomous networks Level 4 will boost business value and now is the time to start

[Copenhagen, Denmark, June 20, 2024] During the Digital Transformation World (DTW) 2024, Dang Wenshuan, Huawei's Chief Strategy Architect, attended the Autonomous Network Industry Summit (hosted by TM Forum and China Mobile) and delivered a keynote address entitled "Embarking on AN L4 for Greater Value."

Keynote address by Dang Wenshuan, Huawei's Chief Strategy Architect

The Autonomous Network (AN) industry has entered a key stage, where the evolution from Level 3 to Level 4 will usher in an exponential leap in the value of AN. In this regard, Dang Wenshuan said, "We believe that AN Level 4 will be achieved based on scenarios and can bring competitive business value in terms of advancing employee capabilities and customer satisfaction. Furthermore, with the development of key technologies, such as telecom foundation models and digital twins, it is feasible to advance towards AN Level 4. Therefore, we suggest that global communications service providers (CSPs) both in developed and emerging markets adopt the leapfrog transformation strategy of embarking on AN from Level 4."

Dang also illustrated Huawei's main strategy for industry development from the aspects of Level 4 reference architecture and application cases. In terms of architecture, in addition to the previous two principles brought up at the TM Forum – "single-domain autonomy and cross-domain collaboration" – Dang proposed three principles: value-driven, crystallization, and productization. Based on these five principles, Huawei's autonomous driving network (ADN) solution offers two types of intelligent products and professional services, including scenario-specific AI agents and role-specific copilot apps.

• After determining their own profile based on scenarios, AI agents are capable of automatic running and continuous optimization. Additionally, they can perform human-agent interactions through the intelligent O&M cockpit, including setting agent targets, monitoring agent running, and AI takeover services.
• Based on specific O&M roles, copilot apps can enable employees by providing LUI-based digital assistant apps on mobile phones and PCs.

The preceding solutions have achieved remarkable outcomes in Huawei's cooperation with CSPs. For example, in cooperation with China Mobile Guangdong, AI agents collaborate with copilot apps to shorten the mean time to repair (MTTR) of troubleshooting on mobile bearer networks from more than 120 minutes to only 20 minutes. And in cooperation with China Mobile Henan, the deployment of the AI agents for wireless network optimization successfully simplifies the service process and streamlines the breakpoints, reducing the number of low-speed cells by 20% and the optimization duration from one day to one hour.

During the summit, Huawei, together with the organizer, tier-1 CSPs like Vodafone and Telefonica, and industry representatives, jointly released the Autonomous Networks Level 4 industry blueprint: high-value scenarios. Dang also attended the release ceremony on behalf of Huawei.

Release ceremony of the Autonomous Networks Level 4 industry blueprint: high-value scenarios

Considering that the evolutionary journey towards AN Level 4 is a long-term process, Dang stressed that, "Autonomous Networks is Now," our industry needs to strengthen cooperation to achieve AN Level 4 in more high-value scenarios. Moreover, based on continuous practice, we should establish a mechanism for evaluating the business effect, constantly optimize the reference architecture of AN Level 4, and embark on the Autonomous Networks Level 4 journey for greater value."

Huawei Intelligent Packet Core Enables 5G-A Differentiated Experience Monetization, Reshaping Business Models

Secondary 5G Innovation: Charting a New Course for Business Success

Huawei Announces 5G-A Industry and Technology Evolution Direction to Promote Shared Success

Online Services

Consumer Products

Huawei Cloud

Sales: +852-800-931-122

Carrier Network