5 Level Of Strategies:

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 1. LOW COST STRATEGY:
• Low cost strategy is a type of pricing strategy in which the firm
offers the products at low price. The firm can gain cost advantages
by increasing their efficiency, taking advantage of economies of
scale, or by getting the raw material at low cost.
• Example;  if two companies make essentially identical products that
sell at the same price in the market place, the one with the lower
costs has the advantage of a higher level of profit per sale.
 2. DIFFERENTIATION STRATEGY
•  Differentiation strategy, as the name suggests, is the strategy that aims
to distinguish a product or service, from other similar products, offered
by the competitors in the market .A differentiation strategy is an
approach businesses develop by providing customers with something
unique, different and distinct from items their competitors may offer in
the marketplace.
• Example;  Starbucks goes beyond selling coffee by providing a
unique coffee experience in their coffeehouses.
 3. COST LEADERSHIP STRATEGY
• Cost Leadership is a strategy to reduce the cost of operation and produce the
lowest priced products or services, to out-do the closest competitors and gain
more profit. Companies can develop a cost leadership strategy by analyzing
existing operations, researching their competitors, identifying strategies to
reduce costs and by keeping a track of progress.
• Example;  McDonald’s practices a division of labour by employing and
training inexperienced staff instead of skilled cooks and thus manages
to cut huge amounts of costs from the salaries of its employees.
4. SELL OUT / DIVESTMENT STRATEGY

• Divestment is a form of retrenchment strategy used by businesses when they

downsize the scope of their business activities. Divestment usually involves
eliminating a portion of a business. Firms may elect to sell, close, or spin-off a
strategic business unit, major operating division, or product line.
• Example; Tata Communications is the best example of divestment
strategy. It has started the process of selling its data center business to
reduce its debt burden.
 5. MARKETING STRATEGY
• A marketing strategy refers to a business's overall game plan for reaching
prospective consumers and turning them into customers of their products or
services. A marketing strategy contains the company’s value proposition, key
brand messaging, data on target customer demographics, and other high-level
elements. 
• Example; Nike- There are very few brands that are as recognizable as Nike and
its “Just do it” slogan. From the beginning, this brand has focused its marketing
on promoting brand values such as overcoming adversity or innovation.