Business Strategy vs Corporate Strategy: What’s the Difference? Omer Riaz July 4, 2022

Business Strategy vs Corporate Strategy: What’s the Difference?

organization strategy

The two commonly used tactics companies practice is business strategy vs corporate strategy. These two strategies are different in nature, yet they play a vital role in making companies profitable. 

Around the globe, the technological and industrial revolution is enforcing companies to practice useful and constructive strategies to be successful. Every company has certain goals and objectives that are achieved through competitive strategies.  

In this article, we will define business strategy vs corporate strategy and the hidden difference between the two of these approaches. 

Overview of Business Strategy 

A constructive business strategy is a plan to gain market share, attract customers and sell products or services to make remarkable revenues. These are designed to make the company competitive and strong within its targeted market. Every organization has specific goals, and the business strategy helps to achieve them. 

The business strategy can include the following steps: 

  • Grabbing customers 
  • Enhancing customer satisfaction 
  • Increasing revenues and profits 
  • Choosing the type of product to offer 

A business strategy should enable the company to understand its competitive advantage and how to benefit from that unique selling point. It elaborates the action needed to achieve desired objectives so that organizational managers can make smart decisions. Business strategy can be adjusted according to the market conditions. 

Overview of Corporate Strategy 

Corporate strategy elaborates an organizational plan which enlists the strategy of entering the required market and how they can do this. Companies use corporate strategy for brand diversification or when they want to enter a new market. The company’s growth is aligned with this strategy. The corporate strategy includes the following: 

  • The market in which the company wants to enter 
  • Addition of business units that can add value to the organization 
  • What are the advantages of entering that market
  • The pace of the organizational growth 

The leadership staff and stakeholders use corporate strategy to decide the market they want to enter and how they can buy those business units that can help plan to be successful. 

Difference Between Business Strategy vs Corporate Strategy

Business strategy vs Corporate strategy differs in their objectives and aims. The business strategy emphasizes competing well in the specific market, and corporate strategy has a prior focus on business growth and revenues. 

Corporate strategy is practiced by higher management. However, managers should keep overall corporate strategy in mind while developing business strategies because the decisions taken can impact the entire organizational goals. 

Below listed are some of the main differences between business strategy vs corporate strategy. 

Aims and Objectives  

Mid-level managers, like the head of departments, use business strategies to meet their desired goals and objectives within their sectors. This strategy is effective for making the best use of company units. Managers working in upper-level management, as leaders, use corporate strategies to help their company grow according to their designed vision. 

Small businesses often develop corporate strategies to accomplish their desired objectives until they grow enough to need business strategies. Companies operating on a large scale need a business strategy to achieve their desired objectives and aims. The reason is that every department works differently and has its objectives, which ultimately require different product or service strategies.


Business strategies work on achieving short-term objectives like getting new customers and increasing revenues. Teams can achieve their desired aims through business strategies that enable them to compete in a certain market. 

Corporate strategies are designed to achieve long-term goals like profit maximization and making plans to resolve comprehensive organizational issues like development and diversification. Corporate strategy lasts long and is grounded on the organizational vision. 


Corporate and business objectives have different aims, and each success factor is measured differently. 

The business strategy focuses on the following things: 

  • Creating customer value 
  • Always being competitive in the targeted market by offering unique products to customers. 
  • Competitive prices to take market share.

The corporate strategy concentrates on the following things: 

  • Increasing company value 
  • Diversifying and expanding brand 
  • Profit maximization 
  • Reducing irrelevant organizational expenses 


Managers can use business strategies to:

  • Creating an effective business plan for their employees that they will follow 
  • Properly understanding their current business model and what can be improved to stay competitive 
  • Determining the ways to be more competitive within their targeted market
  • Increasing motivation of their employees
  • Attracting new investors for investment 
  • Analyzing their success through results 

Leadership staff can use corporate strategies to: 

  • Providing managers guidance to achieve long-term goals 
  • Meet the expectations of company stakeholders 
  • Improving the business efficiency
  • Determining the time and speed of organizational growth 
  • Finding new business opportunities
  • Analyzing the competitors and finding ways to compete with them 


The fundamental benefits of business strategy vs corporate strategy are achieving success and making the business profitable. Yet both approaches have varied advantages. The advantages of the business strategy include: 

  • The direction is clear 
  • Business decisions are perfectly made 
  • A company can gain a competitive advantage within the market 
  • Improving the offered produces and services 
  • Customer satisfaction 
  • Motivating and retaining employees 

Benefits of the corporate strategy include: 

  • Long term growth 
  • Make sure that the company’s operational steps are aligned with its vision and mission 
  • Profit maximization 
  • Reducing risk factors 
  • Improving business management 


Now it’s clear that business and corporate strategies play a vital role in sustaining an organization’s long and short-term growth. While developing both strategies, ensure they align with your desired goals and objectives. Effective development of both strategies will lead to unimaginable growth and high revenues.


What is the difference between corporate and business planning?

Both might be observed similarly while each is used for a specific purpose. Business planning can relate to your business goals, and corporate planning elaborates how you will achieve them. 

What is an example of corporate strategy?

The corporate strategy includes stability, expansion, diversification, horizontal integration, and many others. 

What are the three types of corporate strategy?

Three types of the corporate strategy include: 

  • Cost leadership strategy 
  • Focus strategy
  • Differentiation strategy 

What are the four types of business strategies?

The four types of business strategies include: 

  • Functional strategy 
  • Business strategy 
  • Operational strategy 
  • Corporate strategy