Corporate level strategy is a set of actions in a firm takes to gain competitive edge by having different businesses competing with different products in different markets.
Corporate level strategy please important part in positioning the company in the best possible manner, to stay ahead of competition in the market. C- level strategy helps in customer retention and managing the business risk of external environment. Corporate level strategy is crucial for long-term sustainability of the business.
Firms can pursue three different levels of diversification by using different corporate level strategies.
Low diversification- this involves minimal diversification most of the revenue is generated by existing core business of the firm. Coco Cola are good examples.
Moderate to high justification- in this case firms go for distribution and related areas link to core business. For example Arcelor Mittal has plans to diversify in the areas of power generation, which is related to existing businesses, as they plan to set up our plans for captive use as well to sell in the market. Another example is Patanjali Ayurved , which expanded its business interests from Ayurved to FMCG.
Very high diversification- firm to go with aggression diversification incomplete unrelated and new markets and business. Generally very large enterprises are capable of having very high levels of justification. An example is reliance groups.
how does this relate to the success of an organization?