Difference Between Business Strategy and Corporate Strategy (With Table)

In order to do well in a particular field, everyone needs a strategy to take action. When we talk about an organization or a firm, there are three main kinds of management levels present, namely corporate, functional, and business level.

Business Strategy vs Corporate Strategy

The main difference between Business Strategy and Corporate Strategy is that business strategy includes decisions related to product choice, competition in the market, the satisfaction of the customer, etc. However, corporate strategy has decisions that are more concerned with fulfilling the expectations of stakeholders. This strategy is more focused on the aim of a business.

In business, a strategy is quite crucial when it comes to achieving an objective. It is looked like a blueprint that you have to follow in order to achieve a particular goal.

The business strategy is formed by medium-level management, whereas corporate strategy is formed by top-level management. Usually, business strategy and corporate strategy are treated as a single term by many people. However, it is quite essential to know that they are not.


Comparison Table Between Business Strategy and Corporate Strategy (in Tabular Form)

Parameter of Comparison

Business Strategy

Corporate Strategy


This strategy is concerned with ameliorating the overall performance of the organization by helping it to achieve specific goals.

A corporate strategy helps a business to operate the whole organization. This strategy focuses on stakeholders meeting their requirements.

Formed by

Middle level management

Top level management

Copes with

Business strategy copes with a particular unit or division of a business.

Corporate strategy deals with the operations of the whole business organization.


It is a short term strategy.

It’s a long term strategy with an ultimate goal for the business.


It is focused on competing with the other products in the market.

It is responsible for elevating profits and making the company grow faster.


What is Business Strategy?

Business strategy is nothing but a master plan that is designed to help a company reach specific goals. Having a solid business strategy informs and allures investors.

This also makes sure that they end up investing in your firm due to a sense of security.

The credibility of the firm also gets assured to the
creditors by having a business strategy. Business strategy acts as a blueprint
for the company in order to achieve their goals.

There could be no chance of error in a business strategy as
it might harm your company in this competitive market.

Everyone, who is new to the business, should set their goals upfront. After setting up the goals, it is crucial to make a strategy accordingly and execute on it. You have to understand that business is not a gamble where you approach things with no strategy at all.

While planning a roadmap to your goals, you get to know your various flaws that were deteriorating the functioning of the business process. Targeting such anomalies one by one, let your business to grow by taking your firm a step closer to your desired goal.


What is Corporate Strategy?

Corporate strategy tends to focus on all the units or departments of a firm. It is responsible for the overall growth of the company.

The two primary goals of a corporate strategy are – Diversification and Vertical Integration. Diversification is vital for a business in order to expand into new sectors.

Many times what several corporate strategies assumed to be a
failure turns out to be highly beneficial for the business, later on.

In order to develop a corporate strategy for your business, you need to analyze the weaknesses in the functioning of your business. You have to consider things like where you want your business to take and what steps are you taking for it, etc.

Also, remember that not every strategy you make will work out for your business. Cost leadership is one of the strategies that is used by most of the companies. In cost leadership, a company provides its product or services at a minimal rate possible. This allows them to create a spike in their sales.

This also helps them to make their name in this competitive market. McDonald‘s is the best example of cost leadership in the restaurant industry.

Main Differences Between Business Strategy and Corporate Strategy

  1. The business strategy focuses on how the company is performing overall so they can take steps accordingly in order to improvise the workflow. 
    However, corporate strategy concerns the type of business and the ultimate goal of it.
  2. The middle-level management, which includes managers of various divisions or units, is responsible for the formation of business strategy.
    However, corporate strategy is formed by top-level management, which includes boards of directors, CEO, etc.
  3. Business strategy is considered to be a short term strategy. Whereas, corporate strategy is a long one.
  4. In the business strategy, the primary focus is to make a business plan that will help the organization to achieve its desired goals.
    In the corporate strategy, the main focus is to fulfill the expectations of stakeholders.
  5. Business strategy is meant to compete with other available products in the market.  However, corporate strategy is meant to grow the profits of an organization.



The strategy in business is meant to improve the current
functioning of the firm or organization in order to survive and do well in this
competitive market.

In order to achieve goals, every company has to consider
making strategies and then executing them. Without any strategy in hands, the
business becomes more of a gamble.

Corporate strategies make sure that the firm is going well on the path of achieving their long term goal. However, business strategies targets goals at the unit level of the firm. Business strategy helps a business to compete in the market successfully by achieving short term goals.

The corporate strategy makes sure that the organization is going to achieve its long term goal of elevation in profits. Both of the strategies are a must for a business in order to compete and grow in this rapidly changing marketplace.



  1. https://dl.acm.org/citation.cfm?id=1407318