Business-level strategies are detailed outlines of actions and activities a business takes to offer customers value and maintain competitiveness. The main types of business-level strategies are; cost leadership, differentiation, and focus strategies (Edwards, et al., 2014). The cost leadership strategy aims at producing goods at a lower price per unit while still maintaining a lower or equal market price with competitors. Differentiation strategy focuses on providing goods that are unique compared to what is available. A focus strategy is implemented by selecting a particular market segment and catering to its specific need. To gain a competitive advantage, Bombas utilized the differentiation strategy. Bombas achieved this by producing socks made of softer cotton and providing arch support, making their socks unique and distinguished from what is available in the market (Helm, 2020).
Corporate-level strategies are detailed plans to gain a competitive advantage by combining businesses in different product markets. The main types of corporate-level strategies are; stability, expansion, retrenchment, and combination strategies (Furrer, 2016). A stability strategy focuses on maintaining a business at its present market position. Expansion strategy outlines how a business grows or increases its market. A retrenchment strategy is the withdrawal of either the market or products by an organization to avoid losses. A combination strategy involves mixing all other strategies to improve its overall market performance. Bombas applied the combination strategy by retrenching and expanding its market and products while prolonging its current market. Bombas withdrew from selling its products at conferences and events as the sales were low, thus using retrenching strategy (Helm, 2020). However, they pursued the expansion strategy by moving their sales to the health sector and partnering with Brooklinen, a bedding seller company.
The relationship between the business- and corporate-level strategies implemented by Bombas was an interdependency relationship. For the organization to expand, which is a corporate-level strategy, the business had to lower its production cost and also create a distinctive product, a business-level strategy. Customer value was created by providing unique indoor socks and improved by the organization’s involvement with the homeless.
References
Edwards, J., Try, D., Ketchen, D., & Short, J. (2014). Mastering strategic management-1st Canadian Edition.
Furrer, O. (2016). Corporate level strategy: Theory and applications. Routledge.
Helm, B. (2020). Bombas’s Covid-era pitch: Socks are the new shoes. Inc. Web.
