Business- vs. Corporate-level Strategy

While business-level strategy focused on how an organization generates value by positioning products and services relative to the offerings of other firms in the same industry, corporate-level strategy deals with a portfolio of distinct products and services. When dealing at the business-level, managers ask, “How can we be successful in this business?” When dealing with corporate-level strategy, executives ask, “In what industry or industries should our firm compete?”

The executives in charge of a firm such as The Walt Disney Company must decide whether to remain within their present domains or venture into new ones. In Disney’s case, the firm has expanded from its original business (films) and into television, theme parks, and several others. In contrast, many firms never expand beyond their initial choice of industry.

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Strategic Management by John Morris is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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