Types of Strategies: 5 Levels of

Strategy & Basic Comparison

Complete Explanation of the Different 5 Types of
Strategies in Marketing Under the Strategic
Management and Business Administration Fields
[Link]: Jun 10, 2022

47 32,468 6 minutes read

In this article, we will discuss the different types of strategies in marketing
(strategic management). There are also tried to give some concepts about the
levels of strategy making. For a better understanding, the types of strategies in
business (strategic management) and other related issues describe here.

Before going to the main topic, the basic concept should be cleared. For that
required, there are given a fundamental discussion about the strategy. For
instance,

STRATEGY, this word would use only in military administration. Strategy refers
to the “deployment” of troops from their viewpoint. They’ve expressed the
maneuvering of troops into position before the enemy is engaged. But now, this
word is used in the business and management sector. The businessman can
substitute “resources” for troops. And also deploy different kinds to achieve
objectives.

For better clarification of the term strategy, we should distinguish among three
forms of strategy: general strategy, corporate strategy, and competitive
strategy. The general strategy is such a strategy as to how a given objective will
be accomplished. Thus, the general strategy is concerned with the relationships
between ends and means. This we seek and the resources at our disposal.
Strategy and tactics, both together make bridge the gap between ends and
means. Corporate Strategy defines the markets and businesses in which a
company basis on which company will compete. The success of a competitive
strategy depends on the company’s capabilities, strengths, and weaknesses
concerning its competitors, capabilities strengths, and weakness.
What Are the Types of Strategies in
Marketing (Strategic Management)?

If we want to mention the types of strategies management, we can specify them

as five types or 5 levels of strategy. It may be one kind of New Public
Management (NPM)‘s strategy. What are the different types of strategies in
marketing (strategic management)? Such as:-
1. Competitive Strategy
2. Corporate Strategy
3. Business Strategy
4. Functional Strategy, and
5. Operating Strategy

1. Competitive Strategy:

Firstly, competitive strategy is the first of the kinds of strategies in strategic

management. It refers to a plan that combines the clout of the external
situation. Along with the integrative concerns of the personal status of an
organization. The competitive strategy aims at gaining a competitive advantage
in the marketplace against competitors. Competitive advantage comes from
strategies that lead to some uniqueness in the market. Winning a competitive
strategy is grounded in sustainable competitive advantage. Examples of the
competitive strategy include contrast strategy, low-cost strategy, and focus or
market-niche strategy.

The competitive strategy consists of business approaches and initiatives. It

undertakes a company to attract clients and deliver. Superior values to them
through fulfilling their looking forward as well as to strengthen its market
position. This definition of Thompson and Strickland emphasizes the ‘tactics and
ingenuities’ of directors in outlining the strategy. It means that competitive
strategy is concerned with actions. Its managers undertake to improve the
company’s market position by satisfying the customers. The enlightening
market situation infers undertaking actions contrary to competitors in the
industry.
Therefore, the notion of competitive strategy has a competitor angle. The
competitive strategy includes those tactics that lay down various ways to build a
livable, competitive advantage. Management’s action plan is the focus of the
competitive strategy. The objective of the competitive strategy is to win the
customer’s hearts by satisfying their needs. Finally, it is to outcompete
competitors and attain competitive advantages.
 Strategic Management
Meaning
Types
Combines the clout of the external situation, along with the integrative concerns of
Competitive Strategy
the personal status of an organization
Corporate Strategy The top-level by the senior management of a diversified company
Business Strategy Business-unit level or business-unit strategy
Functional Strategy Pointing up a particular functional area of an organization
Operating Strategy Operating units of an organization

2. Corporate Strategy:

Secondly, corporate strategy is a type of strategy in strategic management. It

draws up at the top level by the senior management of a diversified company. In
our country, a diversified company is known as a ‘group of companies, such as
Bashundhara, Partex, Beximco, and Square Group. Such a strategy describes
the company’s overall corporate strategy. As well, corporate strategy defines
the long-term objectives and generally affects all the business-nits under its
umbrella. A corporate strategy (Bashundhara) may be acquiring the major tissue
paper companies in Bangladesh to become the unquestionable market leader.

Components of Corporate Strategy

What are the key components of corporate strategy? Then, it is time to bring
about the forenamed corporate strategy components, which are mentioned
below:

 Visioning
 Objective setting
 Resource allocation
 Prioritization of strategic tradeoffs

3. Business Strategy:

Thirdly, the different types of strategies in marketing (strategic management)’s

third one is a business strategy. Business strategy formulates at the business-
unit level. It is popularly known as the ‘business-unit strategy.’ This strategy
emphasizes the building up of the company’s competitive position of products or
services. Business strategies are compos of a competitive and cooperative
approach.
The business strategy consists of plans of action adopted to use
a company’s resources and distinctive competencies to gain
competitive advantages in the market.M. A. Mannan
The business strategy covers all the activities and tactics for competing in denial
of the competitors. And behavior management addresses various strategic
matters. As Hill and Jones have remarked, the business strategy consists of
plans of action. It’s strategic managers who adapt to use a company’s
resources. Additionally, managers change distinctive attitudes to gain a
competitive advantage over their rivals in a market. The business strategy is
usually formulated in line with the corporate strategy. The business strategy’s
main focus is product development, innovation, integration, market
development, diversification, and the like.

In doing business, companies confront a lot of strategic issues. Management has

to address all these issues effectively to survive in the marketplace. Business
strategy deals with these issues, in addition to ‘how to compete.’
Components of Business Strategy
The 7 (seven) components comprise a basic framework of business strategy.
Such as:-

 Vision, mission, and values

 Long-term goals for your business strategy
 Financial objectives
 Operational objectives for your business strategy
 Market objectives or creating customer value
 SWOT Analysis
 Business strategy action plans

4. Functional Strategy:

Fourthly, the functional strategy is a type of strategy in strategic management.

A functional strategy refers to an approach that points up a particular functional
area of an organization. It sets down to achieve some objectives of a business
unit by maximizing resource productivity. Once in a blue moon, functional
strategy names departmental strategy since each business function frequently
devolves with a section. Examples of functional strategy comprise production
strategy, marketing strategy, human resource strategy, and financial strategy.
At the level of operating divisions and departments, functional
strategies focus on business processes and value chains. J. D.
Hunger & T. L. Wheelen
The functional strategy is concerned with developing the right stuff to provide a
business unit with a competitive advantage. Each business unit has its own set
of departments, and every department has a functional strategy. Functional
strategies adapt to support a competitive strategy. For example, a company
following a low-cost competitive strategy needs a production strategy. It insists
on reducing cost operation and also a human resource strategy.

Furthermore, It insists on retaining the lowest possible number of employees.

These employees are highly qualified to work for the organization. Other
functional strategies such as marketing strategy, advertising strategy, and
financial strategy must also be formulated to support the business-
level competitive strategy.
The organizational plans become more and more detailed. Likewise, it becomes
specific when managers move from corporate business to functional-level
strategies.

5. Operating Strategy:

Finally, the operating strategy is the fifth type of strategy in strategic

management. It gives form to the operating units of an organization. A company
may develop an operating strategy. For an instance, for its sales zones. An
operating strategy is put across at the field level, usually to achieve on-hand
objectives. In some companies, managers develop an operating strategy for
each set of annual goals in the divisions.
Components of Operations Strategy
Operations strategy consists of six main components or elements. Such as:-

 Designing and positioning the production system.

 Focusing on production or manufacturing and service facilities.
 Designing and developing the product or service.
 Selecting the technology and process development.
 Allocating the resources.
 Planning of capacity, facility, and layout.

Types of Business-Level Strategies:

What are the main strategies in business? After a short detail of the types
of strategic management, here will bring up business-level strategy. In a
diversified company, types of strategies initiate at four levels. ‍You can see the
following table for a better understanding. For instance:-
 Four Types of Business Level Strategies in a Diversified Company
Levels of Organization Name of Strategy
Corporate level Corporate Strategy
Business level Business Strategy
Functional level Functional Strategy
Operating level Operating Strategy
There are three levels of the organization at the business-unit level, and
obviously, three main types of business strategies are formulated. Again it is run
with the specific six processes which depend on the public administration and
private administration fields. For instance:-

Hierarchy of Organizational Levels and Strategies

Three Types of Businesslevel Strategies in a Diversified Company
Levels of Organization Name of Strategy
Business level Business Strategy
 Functional level Functional Strategy
Operating level Operating Strategy
Lastly, we can say that strategic management strategies are a vital topic in
business studies. This section will review the different advanced types of
strategies and strategic management models, like Porter’s Five Forces Model.
Read the Following Books to Enrich Yourself

If you need more knowledge and want to enrich yourself with the topic, for
example, strategic management or the different types of strategies in
marketing, etc., you have to read more. There are included some popular books
list which accelerates to know and given clear concepts.

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About Awash Bank

Awash Bank, Ethiopia’s pioneering private bank, was established on November 10, 1994 by 486 founding
shareholders with a paid-up capital of Birr 24.2 million and started banking operations on Feb. 13, 1995.
Since embarking operation, the Bank has registered remarkable growth. Not with standing global and
domestic challenges, Awash Bank has exhibited a superior operational and financial performances
among private banks operating in Ethiopia. Awash Bank is currently working towards strengthening its
capital base, technological capabilities, human resources and customer base.

Our name derives from the Awash River, which is extensively used in Ethiopia for small to large-scale
irrigation schemes, hydroelectricity generation and for industrial activities. By that token, the tagline
“nurturing like the river” implies Awash Bank’s immense contribution to the country’s socio-economic
development. We also serve the population by encouraging the habit of saving, the provision of credit
facilities and facilitating efficient and fast payment systems.

One of the core values of our bank is accessibility. We always strive to improve our accessibility by
means of different service delivery channels. Currently, we are the most accessible private bank in the
country, with a large footprint of extensive branch networks. In addition to branch networks, we provide
our customers the convenience of 24/7 service through ATMs, point of sale terminals, internet, mobile
and agency banking.

Corporate social responsibility lies at the heart of Awash Bank’s activities since its establishment. The
Bank’s intent is to change the socio-economic situation of the communities within which it operates by
ploughing back funds to improve education, health and the environmental and social wellbeing of the
disadvantaged strata. The positive impact of our activities is clearly indicated in the number of
elementary schools built in collaboration with NGOs, the health facilities improved and the trees planted
in different parts of the country and the like.

Awash Bank’s vision to be one of the Top Ten African Banks by 2030 is a sign of its ambition and
commitment to growth. The bank has a clear strategy in place to achieve this vision, and it is investing in
the resources and capabilities needed to succeed.

Our strategic goals and objectives are based on the aspiration: 'To be one of the Top Ten African Banks
by 2030'.

Vision:

To be the best and preferred financial services provider where customers feel valued

Mission:

To provide the most innovative and accessible banking services to our customers using the most
relevant technology ,and motivated and talented staff to maximize stakeholders value and influence the
life of the society positively

Our Core Values

A – Accessibility

W – Wisdom
A – Accountability

S – Socially Responsible

H – Honesty