Risks that are associated with selecting and implementing the Business Level Strategy

There are five type of business strategies and each type had its own risk when selecting and implementing it. For cost leadership strategy, the risks that are associate with this strategy are a loss of competitive advantage to newer technologies, which allows rivals to produce at lower cost, a failure to detect changes in customers' need and the ability of competitors to imitate the cost leader's competitive advantage through their own unique strategic actions. Competitors …

…eliminated. Lastly for integrated cost leadership/differentiation strategy, the primary risk that awaiting it ahead is that a firm night produce a product that do not offer sufficient value in terms of either low cost or differentiation. When this occurs, the company is "stuck in the middle" which is a disadvantage for the firm. Being stuck in the middle prevents the firm from dealing successfully with the five competitive forces and from earning above-average returns.