As A Business Strategy, The Strategy Behind Dumping Is To (2024)

In this article, we will discuss the different types of strategies in marketing (strategic management). There are also tried to give some concepts about the levels of strategy making. For a better understanding, types of strategies in business (strategic management) and other related issues describe here.

Before going to the main topic, the basic concept should be cleared. For that required, there are given a fundamental discussion about the strategy. For instance,

STRATEGY, this word would use only in military administration. Strategy refers to the "deployment" of troops in their viewpoint. They've expressed the maneuvering of troops into position before the enemy is engaged. But now, this word is used in the business and management sector. The businessman can substitute "resources" for troops. And also deploy different kinds to achieve objectives.

For better clarification of the term strategy, we should distinguish among three forms of strategy: general strategy, corporate strategy, and competitive strategy. The general strategy is such a strategy as to how a given objective will be accomplished. Thus, the general strategy is concerned with the relationships between ends and means. This we seek and the resources at our disposal. Strategy and tactics, both together make a bridge the gap between ends and means. Corporate Strategy defines the markets and businesses in which a company basis on which company will compete. The success of a competitive strategy depends on the company's capabilities, strengths, and weaknesses concerning its competitors, capabilities strengths, and weakness.

Table of Contents

  • 1 What Are the Types of Strategies in Marketing (Strategic Management)?
    • 1.1 1. Competitive Strategy:
    • 1.2 2. Corporate Strategy:
    • 1.3 3. Business Strategy:
    • 1.4 4. Functional Strategy:
    • 1.5 5. Operating Strategy:
  • 2 Business-Level Strategy:

What Are the Types of Strategies in Marketing (Strategic Management)?

If we want to mention the types of strategic management strategies, we can specify it as five types or 5 levels of strategy. It may be one kind of New Public Management (NPM)'s strategy. What are the different types of strategies in marketing (strategic management)? Such as:-

  1. Competitive Strategy
  2. Corporate Strategy
  3. Business Strategy
  4. Functional Strategy, and
  5. Operating Strategy

Read more: Difference Strategic Management Models.

1. Competitive Strategy:

Firstly, competitive strategy is the first of the kinds of strategies in strategic management. It refers to a plan that combines the clout of the external situation. Along with the integrative concerns of the personal status of an organization. The competitive strategy aims at gaining a competitive advantage in the marketplace against competitors. Competitive advantage comes from strategies that lead to some uniqueness in the market. Winning a competitive strategy is grounded in sustainable competitive advantage. Examples of the competitive strategy include contrast strategy, low-cost strategy, and focus or market-niche strategy.

In business, a competitive advantage is an attribute that allows an organization to outperform its competitors. Wikipedia

The competitive strategy consists of business approaches and initiatives. It undertakes a company to attract clients and deliver. Superior values to them through fulfilling their looking forward as well as to strengthen its market position. This definition of Thompson and Strickland emphasizes the 'tactics and ingenuities' of directors in outlining the strategy. It means that competitive strategy is concerned with actions. Its managers undertake to improve the company's market position by satisfying the customers. The enlightening market situation infers undertaking actions contrary to competitors in the industry.

Therefore, the notion of competitive strategy has a competitor-angle. The competitive strategy includes those tactics that lay down various ways to build a livable, competitive advantage. Management's action plan is the focus of the competitive strategy. The objective of the competitive strategy is to win the customer's heart by satisfying their needs. Finally, it is to outcompete competitors and attain competitive advantages.

Strategic Management Types Meaning
Competitive Strategy Combines the clout of the external situation, along with the integrative concerns of the personal status of an organization
Corporate Strategy The top-level by the senior management of a diversified company
Business Strategy Business-unit level or business-unit strategy
Functional Strategy Pointing up a particular functional area of an organization
Operating Strategy Operating units of an organization

2. Corporate Strategy:

Secondly, corporate strategy is a type of strategy in strategic management. It draws up at the top level by the senior management of a diversified company. In our country, a diversified company is known as a 'group of companies, such as Bashundhara, Partex, Beximco, and Square Group. Such a strategy describes the company's overall corporate strategy. As well, corporate strategy defines the long-term objectives and generally affects all the business-nits under its umbrella. A corporate strategy (Bashundhara) may be acquiring the major tissue paper companies in Bangladesh to become the unquestionable market leader.

Components of Corporate Strategy

What are the key components of corporate strategy? Then, it is time to bring about the forenamed corporate strategy components, which are mentioned below:

  • Visioning
  • Objective setting
  • Resource allocation
  • Prioritization of strategic tradeoffs

3. Business Strategy:

Thirdly, the different types of strategies in marketing (strategic management)'s third one is a business strategy. Business strategy formulates at the business-unit level. It is popularly known as the 'business-unit strategy.' This strategy emphasizes the building up of the company's competitive position of products or services. Business strategies compos of a competitive and cooperative approach.

The business strategy consists of plans of action adopted to use a company's resources and distinctive competencies to gain competitive advantages in the market. M. A. Mannan

The business strategy covers all the activities and tactics for competing in denial of the competitors. And behavior management addresses various strategic matters. As Hill and Jones have remarked, the business strategy consists of plans of action. It's strategic managers who adapt to use a company's resources. Additionally, managers change distinctive attitudes to gain a competitive advantage over their rivals in a market. The business strategy usually formulates in line with the corporate strategy. The business strategy's main focus is product development, innovation, integration, market development, diversification, and the like.

In doing business, companies confront a lot of strategic issues. Management has to address all these issues effectively to survive in the marketplace. Business strategy deals with these issues, in addition to 'how to compete.'

Components of Business Strategy

The 7 (seven) components comprise a basic framework of business strategy. Such as:-

  • Vision, mission, and values
  • Long-term goals for your business strategy
  • Financial objectives
  • Operational objectives for your business strategy
  • Market objectives or creating customer value
  • SWOT Analysis
  • Business strategy action plans

4. Functional Strategy:

Fourthly, the functional strategy is a type of strategy in strategic management. A functional strategy refers to an approach that points up a particular functional area of an organization. It sets down to achieve some objectives of a business unit by maximizing resource productivity. Once in a blue moon, functional strategy names departmental strategy since each business function frequently devolves with a section. Examples of functional strategy comprise production strategy, marketing strategy, human resource strategy, and financial strategy.

At the level of operating divisions and departments, functional strategies focus on business processes and value chains. J. D. Hunger & T. L. Wheelen

The functional strategy is concerned with developing the right stuff to provide a business unit with a competitive advantage. Each business unit has its own set of departments, and every department has a functional strategy. Functional strategies adapt to support a competitive strategy. For example, a company following a low-cost competitive strategy needs a production strategy. It insists on reducing cost operation and also a human resource strategy.

Furthermore, It insists on retaining the lowest possible number of employees. These employees are highly qualified to work for the organization. Other functional strategies such as marketing strategy, advertising strategy, and financial strategy must also be formulated to support the business-level competitive strategy.

The organizational plans become more and more detailed. Likewise, it becomes specific when managers move from corporate business to functional-level strategies.

5. Operating Strategy:

Finally, the operating strategy is the fifth type of strategy in strategic management. It gives form to the operating units of an organization. A company may develop an operating strategy. As an instance, for its sales zones. An operating strategy is put across at the field level, usually to achieve on-hand objectives. In some companies, managers develop an operating strategy for each set of annual goals in the divisions.

Components of Operations Strategy

Operations strategy consists of six main components or elements. Such as:-

  • Designing and positioning the production system.
  • Focusing production or manufacturing and service facilities.
  • Designing and developing the product or service.
  • Selecting the technology and process development.
  • Allocating the resources.
  • Planning of capacity, facility, and layout.

Read: Types of Entrepreneurship

Business-Level Strategy:

What are the main strategies in business? After a short detail of the types of strategic management strategies, here will bring up about business-level strategy. In a diversified company, strategies initiate at four levels. ‍You can see the following table for a better understanding. For instance:-

Levels of Organization Name of Strategy
Corporate level Corporate Strategy
Business level Business Strategy
Functional level Functional Strategy
Operating level Operating Strategy
Four-Level Strategies in a Diversified Company

There are three levels of the organization at the business-unit level, and obviously, three types of strategic management strategies formulate. Again it is run with the specific six processes which depend on the public administration and private administration field. For instance:-

As A Business Strategy, The Strategy Behind Dumping Is To (1)
Levels of Organization Name of Strategy
Business level Business Strategy
Functional level Functional Strategy
Operating level Operating Strategy
Tree-Level Strategies in a Diversified Company

Lastly, we can say that strategic management strategies are a vital topic in business studies. This section will review the different advanced strategies and strategic management models, like Porter's Five Forces Model.

If you need more knowledge and want to enrich yourself with the topic, for example, strategic management or the different types of strategies in marketing, etc., you have to read more. There are included some popular books list which accelerates to know and given clear concepts.

Book Name Author Amazon Price
Strategic Management Frank Rothaermel Check
Strategic Management: Concepts and Cases: Competitiveness and Globalization Michael A. Hitt, R. Duane Ireland, and Robert E. Hoskisson Check
The Reading Strategies Book: Your Everything Guide to Developing Skilled Readers Jennifer Serravallo Check
As A Business Strategy, The Strategy Behind Dumping Is To (2024)


As A Business Strategy, The Strategy Behind Dumping Is To? ›

Explanation :- As a business strategy, The strategy behind dumping … Transcribed image text: As a business strategy, the strategy behind dumping is to o better utilize e-commerce opportunities.

What is the strategy behind dumping? ›

Dumping occurs when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market. The biggest advantage of dumping is the ability to flood a market with product prices that are often considered unfair.

What are the results of free trade quizlet? ›

Free trade results in a mutually beneficial exchange between and among nations. Trading countries generally benefit from a free trade environment because global trade enables a nation to produce what it is most capable of producing and to buy what it needs from others in a mutually beneficial exchange relationship.

What trade is the movement of goods and services among nations without political or economic barriers? ›

Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange. The concept of free trade is the opposite of trade protectionism or economic isolationism.

What is a favorable balance of trade quizlet? ›

A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports. Trade deficit. An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.

What is dumping quizlet economics? ›

Dumping is defined as the situation in which. foreign producers sell a product at a price below the cost of production.

What statement is true about dumping? ›

Which statement is true about dumping? Dumping occurs when the country of origin has products with the latest technology that are in high demand in overseas markets. Dumping occurs when a business sells products at much more than what it costs to produce them.

Who benefits from free trade? ›

Consumers benefit from lower prices.

Free trade reduces the price of imported goods. This enables consumers to enjoy increased living standards. After the purchase of imports, they have more left over income to spend on other goods. Free trade can also lead to increased competition.

What does free trades lead to? ›

Essentially, free trade enables lower prices for consumers, increased exports, benefits from economies of scale and a greater choice of goods. This explains that by specialising in goods where countries have a lower opportunity cost, there can be an increase in economic welfare for all countries.

Who benefits from free trade and who loses? ›

Consumers are the gainers of international trade because international trade allows consumers to purchase goods and services at low prices. Producers are the losers of international trade.

What are the 3 major types of economic trade barriers? ›

The major obstacles to international trade are natural barriers, tariff barriers, and nontariff barriers.

What are the 4 different trade barriers? ›

The main types of trade barriers used by countries seeking a protectionist policy or as a form of retaliatory trade barriers are subsidies, standardization, tariffs, quotas, and licenses.

What is the difference between exports and imports called? ›

Balance - The difference between exports and imports. A positive balance is called a surplus. A negative balance is called a deficit.

What is the most basic reason why a business should be managed ethically? ›

Business ethics enhances the law by outlining acceptable behaviors beyond government control. Corporations establish business ethics to promote integrity among their employees and gain trust from key stakeholders, such as investors and consumers.

What are the 5 basic principles of free enterprise? ›

The U.S. economic system of free enterprise has five main principles: the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.

What is the object of dumping? ›

Dumping is a form of international price discrimination in which the price of a product sold in the importing country is lower than the price of the same product offered in the exporting country's market.

What are examples of dumping? ›

Dumping usually involves exporting large quantities or offloading a product on a foreign market. For example, if UK businesses started selling apples to the US for less than what they're worth in the US, then US apple producers would have a hard time selling their products to the domestic market.

What is the purpose of dumping economics? ›

Dumping is when foreign firms dump products at artificially low prices in the European market. This could be because countries unfairly subsidise products or companies have overproduced and are now selling the products at reduced prices in other markets.

Which of the following is a characteristic of dumping? ›

Which of the following statements is a characteristic of dumping? It refers to the sale of an exported product at a price lower than that charged for the same or a like product in the ''home'' market of the exporter.

Why dumping is becoming a serious concern among trading nations? ›

But dumping is becoming a serious concern among trading countries due to the following reasons: Due to dumping, the cheap price of imported goods harms the domestic industry as the domestic industry is unable to sell its goods cheaper than the imported goods as their cost of production is higher.

Which of the following refers to dumping quizlet? ›

Which of the following refers to dumping? Selling domestic goods in the international market at much lower prices.

Does free trade help or hurt the poor? ›

Developing countries can benefit from free trade by increasing their amount of or access to economic resources. Nations usually have limited economic resources. Economic resources include land, labor and capital. Land represents the natural resources found within a nations' borders.

Does free trade help the poor? ›

Prices and availability of products. Trade liberalization helps the poor in the same way it helps most others, by lowering prices of imports and keeping prices of substitutes for imported goods low, thus increasing people's real incomes.

How does free trade strengthen business? ›

Free Trade Lower Costs

Traditionally, free trade allows companies to import raw materials for producing business goods domestically. Companies can also make direct investments into foreign economies to produce goods at a lower cost in these environments.

How do free trades make money? ›

The method behind zero-commission trading is the use of order flow arrangements with third part liquidity providers. Zero-commission brokers would have agreements to direct their customer trade orders to specific providers in exchange for a commission/fee based on volume.

Why is free trade bad for the poor? ›

Adverse Working Conditions. As underdeveloped countries attempt to cut costs to gain a price advantage, many workers in these countries face low pay, substandard working conditions and even forced and abusive child labor.

Who controls free trade? ›

The United States is Member of the World Trade Organization (WTO), and the Marrakesh Agreement Establishing the World Trade Organization (WTO Agreement) sets out rules governing trade among the WTO's 154 members.

Who benefits the most from trade? ›

We find that lower-income households, though possibly more exposed to the labor market costs, benefit more than do higher-income households from the reduction in prices that trade induces. This is because low-income and low-wealth households use a larger fraction of their expenditures on tradable goods and services.

Who opposed free trade? ›

The fledgling Republican Party led by Abraham Lincoln, who called himself a "Henry Clay tariff Whig", strongly opposed free trade and implemented a 44% tariff during the Civil War, in part to pay for railroad subsidies and for the war effort and in part to protect favored industries.

What is the most common trade barrier? ›

The most common barrier to trade is a tariff–a tax on imports. Tariffs raise the price of imported goods relative to domestic goods (good produced at home). Another common barrier to trade is a government subsidy to a particular domestic industry.

What are 4 examples of barriers to free trade? ›

These four main types of trade barriers include subsidies, anti-dumping duties, regulatory barriers, and voluntary export restraints.

What are 5 examples of trade barriers? ›

The barriers can take many forms, including the following:
  • Tariffs.
  • Non-tariff barriers to trade include: Import licenses. Export control / licenses. Import quotas. Subsidies. Voluntary Export Restraints. Local content requirements. Embargo. Currency devaluation. Trade restriction.

What are the four 4 factors of production? ›

Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy.

Which of the following is not considered a barrier to trade? ›

The Correct Answer is Option 3 i.e Export Security.

What is an economic trade barrier examples? ›

Trade barriers include tariffs (taxes) on imports (and occasionally exports) and non-tariff barriers to trade such as import quotas, subsidies to domestic industry, embargoes on trade with particular countries (usually for geopolitical reasons), and licenses to import goods into the economy.

What are trade barriers simple? ›

A trade barrier refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licences etc.

What are standards in trade barriers? ›

Standards that discriminate against imports and nontransparent or discriminatory requirements for showing conformity to standards can create significant non-tariff trade barriers. The economic harm caused by trade discrimination and protection of domestic markets is well documented.

How do trade barriers affect business? ›

The effects of trade barriers can obstruct free trade, favor rich countries, limit choice of products, raise prices, lower net income, reduce employment, and lower economic output. The law is most commonly used as a trade barrier due to the significant control the government has over it.

What is the difference between balance of payments and balance of trade? ›

The balance of trade is the difference between a country's exports and imports of goods, while the balance of payments is a record of all international economic transactions made by a country's residents, including trade in goods and services, as well as financial capital and financial transfers.

Which of the following items is a component of current account of balance of payment? ›

There are three components to the current account – the 'trade balance', 'primary income balance' and 'secondary income balance'.

What is the difference between balance of trade and balance of payment? ›

Balance of trade (BoT) is the difference that is obtained from the export and import of goods. Balance of payments (BoP) is the difference between the inflow and outflow of foreign exchange. Transactions related to goods are included in BoT. Transactions related to transfers, goods, and services are included in BoP.

What are some unethical behaviors? ›

Contents show
  • Taking Advantage of Misfortune.
  • Overbilling Clients.
  • Lying.
  • Kickbacks.
  • Money Under the Table.
  • Mistreatment of Animals.
  • Child Labor.
  • Oppressing Political Activism.

What are unethical behaviors in the workplace? ›

Common unethical behaviours in the workplace

This can be staff showing up late, taking longer or additional breaks, falsifying time sheets, or running personal errands on work time. These bad habits can quickly spread to other employees.

What are the three components of business ethics? ›

There are three parts to the discipline of business ethics: personal (on a micro scale), professional (on an intermediate scale), and corporate (on a macro scale).

What are 3 basic roles of consumers? ›

In this section, you'll learn about three basic buying princi- ples that can help you and all consumers achieve this goal. They are: (1) gathering information; (2) using advertising wisely; and (3) comparison shopping.

What are the 7 goals of free enterprise? ›

These seven goals are economic freedom, economic equity, economic security, economic growth, economic efficiency, price stability, and full employment.

What is profit motive in business? ›

The profit motive is the intent to achieve a monetary gain in a project, transaction, or material endeavor. Profit motive can also be construed as the underlying reason why a taxpayer or company participates in business activities of any kind.

What is an explanation of dumping that does not assume sinister motives? ›

What is an explanation of dumping that does not assume sinister motives? 1. Demand for the product shifts to the left, drastically lowering the price of the product.

What occurs when a company practices dumping quizlet? ›

What happens when dumping occurs? Dumping refers to the practice of selling goods in a foreign market at a price that is below cost or below what it charges in its home country. When a company dumps, it is trying to win more customers by driving domestic producers out of the market.

What are the two official definitions of dumping quizlet? ›

Dumping. - when goods are exported at a price less than their normal value. - less than sold in domestic market, or less than full production cost. Price-based Dumping. - when a firm sells product in a foreign market @ price below that for which the firm sells the same product in the domestic market.

Which of the following statements is true of tariffs? ›

Answer and Explanation: 'Exports tariffs are used by countries when they believe an export's price is lower than it should be' is a true statement.

What is an example of dumping? ›

Dumping usually involves exporting large quantities or offloading a product on a foreign market. For example, if UK businesses started selling apples to the US for less than what they're worth in the US, then US apple producers would have a hard time selling their products to the domestic market.

What is a practical example of dumping? ›

An example of official dumping is the introduction of Spanish black olives into the American market. This situation has already caused the filing of several complaints due to prices that are only possible due to European Union subsidies.

What are the three types of dumping? ›

There are three main different types of dumping: persistent, predatory, and sporadic.

What is the aim of dumping by businesses? ›

Its main purpose is to gain a competitive advantage over the other suppliers in the importing country's market. Therefore, it is advantageous for the exporting firm to dump the product until it beats the competition in the foreign market.

How does dumping affect the business? ›

Dumping can push producers and manufacturers in the foreign (importing) country out of business, which can result in loss of jobs and higher unemployment.

Why do companies do dumping? ›

If companies sell products below production costs, this can also be considered dumping. In both cases, a company engaged in dumping is usually trying to eliminate competitors and gain market share, potentially establishing a monopoly.

What is dumping referred to? ›

Occurs when a country or company exports a product at a price that is lower in the foreign importing market than the price in the exporter's domestic market, in order to gain market share and harm other competitors.

Which of the following is true of dumping quizlet? ›

Which of the following is true of dumping? Dumping is the process of selling products in a foreign market at a price above their cost of production.

Which of the following accurately describes the concept of dumping? ›

Which of the following accurately describes the concept of dumping? A company decides to sell its exports to another country at a lower price than it sells the same products in its domestic market.

What are the three 3 types of tariffs define? ›

There are three main types of tariff and they can be queried in UNCTAD TRAINS available through World Integrated Trade Solution (WITS). The three types of tariff are Most Favored Nation (MFN), Preferential and Bound Tariff.

What are the three types of tariffs? ›

What Are the Different Types of Tariffs?
  • Specific tariffs: A specific tariff is levied on a product irrespective of its value. ...
  • Compound tariffs: A compound tariff depends on the imported product's unit and value. ...
  • Ad valorem: "ad valorem" is a Latin word that means "according to value".
Jun 2, 2023

What are the 4 types of tariffs? ›

These include specific tariffs, ad valorem tariffs, compound tariffs, tariff-rate quotas, and retaliatory tariffs.


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