Assignment #3 Business Strategy Formulation

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Assignment#3: Business Strategy Formulation

Assignment#3: Business Strategy Formulation

BusinessStrategy Formulation is the process of identifying the best method ofachieving a company`s goals. It involves formulating a plan of actionthat brings out a competitive advantage over other businessesoffering similar products or services. This paper seeks to evaluatethe four business level strategies namely low-cost leadership,differentiation, focus and best value and their application in thehospitality industry.

Low-costleadership is a strategy applied by offering the market with productsand services at the lowest prices but maintaining the same qualityand features as its competitors. This strategy involves reduction ofproduction costs so as to achieve the lowest prices possible.Differentiation is simply the provision of products or services withunique features as compared to similar products being offered bycompetitors. This strategy requires the creation of traits that areexpensive or hard to replicate to form a niche over the competitors.Focus strategy involves the company concentrating its strategies onan identifiable market segment, and it can either be in the form oflow-cost or differentiation focus. This strategy requires identifyinga niche market and providing the best product or service to cater fortheir need. Best value is a strategy aimed at providing the marketwith the best product for the value of their money. The major goal ofthis strategy is to maintain the lowest cost and prices as comparedto its competitors offering similar products and service, withoutcompromising on quality and features.

Inconclusion, upon my graduation, I plan to seek a hospitality industryjob in a reputable hotel like The Hilton. This hotel has been able tocurve a niche in the market through applying differentiation and bestvalue strategies. This can be seen through a constant approach toinnovative products, amenities, and services. The style is also ahuge factor in the success of Hilton hotel as a business operating inthe hospitality industry.