Business-Level Strategy is adopted when a firm tries to gain market share by keeping costs low compared to its competitors.

A cost leadership strategy concerns with the competitive aspect of a firm’s products or services in its industry or market segment.

A differentiation strategy concerns with developing distinctive competencies by functional areas or departments as well as their ability to coordinate among various departments to provide competitive advantage.

Functional-Level Strategy is adopted when a firm seeks to be unique and distinguish its products or services from others in the industry.

A focus strategy aims either at a low cost advantage or a differentiation advantage for a narrow segment or niche market.