Q3. What Business Level Strategy Mr.

Siddharth has been following so far and What strategy should

he adopt in a high growth market?

Business level strategies refer to the combined set of moves and actions taken with an aim
of offering value to the customers and developing a competitive advantage, by using the
firm’s core competencies, in the individual product or service market.

Following are various Business Level strategies,

1. Cost leadership
2. Differentiation
3. Focus
If we take a closer look at the case we can see that Sidhharth has been following Focus
strategy

This strategy is used by the firms to produce products and services, which fulfils the need of
small consumer groups. The strategy relies on the segment of the industry which is
considerable in size, higher growth potential. This is commonly used by small or medium-
sized enterprises.

As it has been mentioned in the case, the market is small and the company has been
emphasizes on maintaining high quality standards.

To grow in this market and increase their operations in other countries, according to our
group we should focus on Cost leadership strategy as theres a lot of potential for
manufacturing the auto components cheaply in India and export it to other countries. As A
cost-effective manufacturing base keeps costs lower by 10-25% relative to operations in
Europe and Latin America and India is the second largest steel producer globally, hence has
a cost advantage.