2. Broad Leader
• Intended to be cost leader in all markets
• Accepting lower margins with higher sales
Overview
• Transition to Niche Cost Leadership
• Targeted Low-end and Traditional markets
Low Cost Provider
3. Rounds 1-3
Pursued low-cost
high production
strategy and broad
differentiation
Met customer criteria
Introduced new product for
next round
Successfully implemented
automation for future
Redefine markets, strategic
decisions to introduce and
eliminate products
Poor strategy
Invested too heavily in R&D
Poor forecast properly
High Inventory Costs.
No promo budget
Emergency loan
4. Rounds 4-8
Shifted strategy:
Niche markets
->
Low End and
Traditional Markets.
Profit increase:
$36.6M
Focus on customer criteria
Increased invested in promo &
sales budget
Higher customer awareness &
accessibility
Issue:
-Balance scorecard-
Customer Buying criteria
remained low
