Which would be an example of corporate strategy?

• A. Diversification into new industries
• B. Achieving cost leadership in a market
• C. Developing a new product for an existing market
• D. Enhancing customer service in existing product lines

Answer: (A)

Corporate strategy looks at the company as a portfolio of businesses and decides how to create value across those diverse units. Diversifying into new industries changes the scope of the enterprise itself by adding whole new lines of business and reallocating resources across different markets. That’s the essence of corporate-level thinking: where the company competes and how it allocates its assets among its various businesses.

In contrast, achieving cost leadership in a market targets competitive advantage within a particular market or product space, which is a business-level move. Developing a new product for an existing market focuses on product development within a single business unit. Enhancing customer service in existing product lines improves operations within an existing business, also at the business level.