Corporate Level Strategy

Corporate level strategy:

Corporate level strategy is an action taken to gain a competitive advantage through the selection and management of a mix of business competing in several industries or product markets.

To sustain in a competitive environment and gain competitive advantage we need to identify

• The new business or industry firm should enter

• Value creating activities firm should perform

• Method of exiting or entering a business industry to maximize long run profitability.

• Companies must adopt a long run perspective to adopt a corporate level strategy.

For example, impress telefilm enters in aviation industry. Now Impress telefilm can enters in this industry by acquiring one of the company of this aviation industry. Acquisition is an option to enter in corporate level. Google is not in Bangladesh because the rules and regulation of the Google Company does not match with the rules and regulation of the Bangladesh.

A primary approach to corporate level strategy is diversification

Diversification:

Diversification is a form of growth strategy. Growth strategy involves a signification increase in the performance objective (usually sales or marketing) beyond past level of performance. This strategy is used to expand firm’s operation by adding markets, products, service or stages of production to the existing business. The purpose of diversification in to enter lines of business that are different from current operations.

For example, the fortune 500 companies with more than 25% revenue comes from diversification activities. These companies find the opportunities or threat to enter in new market. When there is low performance,