Full Answer Section

Integration is a strategy in which a company seeks to combine different parts of the value chain in order to create a competitive advantage. This can be done through vertical integration (combining different stages of the production process) or horizontal integration (combining different businesses that produce the same or similar products).

All three of these strategies can be effective, but they are not all right for every company. The best strategy for a company will depend on a number of factors, such as its industry, its resources, and its competitive landscape.

Differentiation can be a very effective strategy, but it can also be very costly to maintain. In order to be successful, a company must be able to consistently deliver a product or service that is perceived as being superior to those of its competitors. This can be difficult to do, especially in industries where technology is changing rapidly.

Cost leadership can also be a very effective strategy, but it is important to make sure that the company is not sacrificing quality in order to reduce costs. Companies that use a cost leadership strategy must also be careful to avoid price wars with their competitors.

Integration can be a very effective strategy for companies that are able to successfully integrate different parts of the value chain. However, it is important to make sure that the integration does not make the company less efficient or less responsive to its customers.

Here are some examples of companies that have successfully used each of these strategies:

Differentiation:

• Apple
• Nike
• Tesla

Cost leadership:

• Walmart
• McDonald’s
• Amazon

Integration:

• ExxonMobil
• Ford Motor Company
• Toyota

How to Choose the Right Business Strategy

The best business strategy for a company will depend on a number of factors, including its industry, its resources, and its competitive landscape. Companies should carefully consider all of these factors before choosing a strategy.

Here are some questions that companies can ask themselves when choosing a business strategy:

• What are our strengths and weaknesses?
• What are the opportunities and threats in our industry?
• What are our customers looking for?
• What are our competitors doing?
• What resources do we have available?

Once companies have answered these questions, they can start to narrow down their options and choose the strategy that is best for them.

Conclusion

All three of the main business strategies (differentiation, cost leadership, and integration) can be effective, but they are not all right for every company. The best strategy for a company will depend on a number of factors, such as its industry, its resources, and its competitive landscape. Companies should carefully consider all of these factors before choosing a strategy.