Case Analysis Of Capsim

Case Analysis Of Capsim
3.1 Phase One––Differentiation Stage
Table 1 Mistakes &Possible consequences (Source: Capsim 2016)
During the Phase 1 operating from 2016 to 2018, Andrew smashed the performance markets by
applying differentiation strategy. Unfortunately, due to the several mistakes the Andrew made, the
company ranked at 2nd place, but there was possible to to win the market leader position in next two
years.
3.2 Phase 2 Cost Leadership Strategy launched new performance products 'Apace' and 'Apeak' in
2018 and 2019 separately. The cumulative profit grew and secured the company second place
positioning. As the diagram (Figure 7) below shows The market share increased significantly from
2018 to 2020. Especially, in Europe, the market share raised 14% in two years, which made the
company in the dominant position. Figure 8. Market Share in three regional markets from 2018–
2020 (Source: The Globe 2018–2020) ... Show more content on Helpwriting.net ...
As a matter of fact, regarding to Capsim (2016), the taxes increased dramatically from $6,173
(2018) to $17,754 (2020). The reason why is Andrew suffered by this, Euro is the major market for
the company. When the numbers of units sold increased, the total tariffs were growing. Moreover,
the exchange rate was changing as time goes by. Euro devaluation made the money shrink from
European market. Finally, these factors prevent Andrew achieving market leader in the industry.
4. Recommendations
Although Andrew secured the second place in medical test devices industry after 5 years running,
there were two major issues noticed and could be improved.
Firstly, accurate forecast could save the company huge amount of money. Andrew suffer inventory
carry cost since the first round. The analysis could be done specifically over competitors' actions and
intentions. Andrew is expected to distribute capital more efficient than
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Fist And Cost Leadership Strategy: Micromax '
ABSTRACT The purpose of this writing is to explain the cost/price leadership strategy of a
company that has established a strong base in spite of facing competition from various established
brands. The company's focus strategies as well various aspects of strategy clock such as economies
of scale is explained. It talks about the key resources the company employs in this cost leadership
strategy to cover the market segment, the threats it faces in the foreseeable future with regard to the
market share, price and innovation. Also, the counter measures applied by the company in order to
counter balance the opportunities, threats and maintaining sustainability. 1. One of the leading
consumer brands in India is Micromax Informatics Limited. It is also the tenth largest ... Show more
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They don't have an international presence. The problem with this company is that it doesn't attract
tech enthusiasts even though it is a large player in smart phone markets. There is always that scene
where you get what you pay for and with cost based competitive advantage, even though the
company has a great market share the quality might is not that great. In the smart phone industry
Micromax is often looked as a low quality mobile makers as it finds itself difficult to match big
players like Apple and sometimes Samsung. Since this is a market which has lot of uncertainty. Like
Micromax there are several other players who are offering similar cost leadership strategy in other
parts of the world and also locally. The global companies want a share of the pie in markets like
India, where the smartphones sales are increasing on a large proportion. There are more mobile
phones per person than toilets in India. The tech environment is always changing and big players
can easily cope up with the change. It might be difficult for small companies. Micromax's strategy is
admirable but other players can imitate this

Business Strategy: Black And Decker
Black and Decker is a multinational corporation based in Baltimore Maryland, well known for its
production of consumer and professional power tools. The company sells its products in over 100
nations with a revenue of $5 billion, with operations in Canada and Britain. During its growth, the
company was decentralized and kept all of its businesses functions as close as possible to the market
to be served. During the 1950's and 1960's, Black and Decker's were using a Multicountry Strategy,
which is a strategic approach which fits each hosts market situation. During this time the company
established 23 wholly owned subsidiaries as well as two joint ventures in foreign markets. It had a
very strong brand image and not much competition as it owned a near monopoly share of the ...
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New companies entered the power tool industry, which lead to the company having to change its
strategy. Its main competitors were Bosch, Makita and Panasonic which posed a great threat to
Black and Decker's monopoly position in the market. During this time the company shifted towards
a rationalization strategy in which, the company increases its efficiency by, in this case, closing
factories and moving towards centralization. Black and Decker's centralized its Research and
Development and production. They were moved into fewer but more efficient locations.
Furthermore, rather than owning a 23 independent subsidiaries, the company changed into a
centralized organization. While globalization was still kept as a key part of the company's strategy,
Black & Decker was no longer as dominants which set it back in terms of company growth. By the
1990's the company faced new competition. Powerful retailers such as Home Depot and Lowe's
created great pressure on prices causing the company to get rid of more factories. Black & Decker's
factories competed amongst each other not to be shut

Advantages Of Lenovo
3.1 Recommended Future strategic direction to attain competitive advantage
3.1.1 Proposed strategy
It is important for a company to choose a relevant internationalization strategy in order to attain
competitive advantage. Basically, competitive advantage is a company's ability to perform in one or
more ways that competitors cannot or will not match (Philip Kotler, Gary Armstrong, 2007, p182)
As Lenovo has been successfully internationalizing into other country by using joint venture as their
strategy, the new relevant proposed strategy that the company can use is direct exporting. Direct
exporting is considered relevant to be used as the new strategy for Lenovo because it is the least
risky strategy of all. In fact, Lenovo can maximizes their profit and minimizing their risk in direct
exporting ... Show more content on Helpwriting.net ...
As direct exporting is the new proposed strategy in 3.1.1, Lenovo will be focusing on the pressures
for global integration which is to seek cost reduction through economies of scale and arbitrage
benefits. As Lenovo wanted to attain competitive advantage through cost leadership strategy, they
first have to cut down their cost in order to be able to sell product with lower price. Hence, the
pressure of global integration in cost reduction is identified there.
The advantages that global integration can give to Lenovo through cost leadership are that they can
help Lenovo to save costs and achieve global efficiencies. They can also improve the quality of
product and processes. High quality product promotes global brand recognition and gives rise to
customer preference and efficient international marketing programs. They create economies of scale,
which can result in lower operational costs, higher quality standardized product and homogenization
consumer demand.
3.1.3 Global

Strategy to Make Samsung Profitable
The appointment of Yun Jong Yong as president and CEO of Samsung in 1996 was symbolic to the
beginning of the organizations transition from its previous business level strategy of cost–leadership
to its now successful implementation of differentiation. Before refocusing the direction of
Samsung's strategy it was originally making most of it's profits producing lower–priced appliances
that cost–conscious consumers were more likely to pick up if they couldn't afford a higher priced
brand (i.e. Sony or Mitsubishi). Also during that time Samsung has established itself as a low–cost
supplier of various components to larger and better–known manufactures around the world.
Although the organization was profitable at the time the over–all cost leadership strategy
implemented by Samsung was positioned to be vulnerable to future external threats that could send
the company belly–up.
In order for the overall–cost leadership strategy to make Samsung profitable it relied on various
components in order to produce technologies that have been developed by other firms and charged
at a lower cost. The main factor includes Samsung's ability to scout for locations that would allow to
keep manufacturing costs to a minimum, while maintaining a high–volume production due to lower
profit margins. The reliance of pushing for high–volume production proved to be vulnerable to the
external threat of economic turmoil (Asia, 1997) that led to high inventory costs that came to the
point that Samsung was

Case Analysis Of SWAAirlines
1. SWA's Competitive Strategies and Execution
Cost Leadership: Under low cost leadership strategy, SWA emphasize on low–cost fares offer. SWA
has tried to price the same fares within a state–a method to strengthen its position as low–cost leader
in airline industries. This strategy can be achieved through simplifying their fare system by less
relying on artificial intelligence and eliminates unnecessary costs. Another step to keep the fares
low, SWA only provides snacks on flights instead of costly meals service. Not only that, SWA
eliminates unnecessary cost in various methods, such as reusing passengers boarding pass and
eliminating intermediaries' costs (i.e. travel agents). Moreover, SWA is equipped with exceptionally
productive work force to support this strategy. For instance, the pilots and flight attendants even go
as far to help cleaning aircraft and checking in passengers at the gate.
Differentiation: SWA make a great distinction by delivering outstanding services to their customers.
To actualize this, SWA is extraordinarily selective for recruitment. SWA recruits applicants that
demonstrate SWA spirit, which is positive attitude and teamwork; usually recruitment is through
peer recruiting or interview. Adding to that, new–recruited employee will be required to undergo
comprehensive training. This extensive recruitment resulting each of ... Show more content on
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Cutting the cost by 30% was an attempt to gain market share from SWA. United's declaration of
head–to–head war begin by matching the going price on all routes, providing seat selection, first–
class cabin, and mileage program. However, indicated by unsatisfied and burnout employees,
United's strategy was not effective. However, SWA should consider moderate level of competitive
threat from Alan Magary. Considering that Magary have alternatives plan and innovative ideas, such
as patterned seat cover to disguise coffee

Cost Leadership Strategy Of Dell
STRATEGIC MANAGEMENT Dell Company has a successful business strategy. As it is following
cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique
customization. In response to the high performance and better chances for growth Dell is applying
two way strategy parallel to one another. Dell integrate cost leadership skills with differentiated
features of the products it supplies. Moreover, being an IT company it has many opportunities in
related areas. Business–level and corporate–level strategy combined to offer a way of dealing with
the realities. The strategies are as follows: Business–Level strategy: Fulfilling the client/customer's
requirement Dell perform primary and support activities that produces cost effective and
differentiated features. The company provide ... Show more content on Helpwriting.net ...
The company's evolution was achieved by taking away share from business frontrunners and "co–
modifying" the product. Rather than being the market leader in other consumer electronic products
(such as HDTV, digital cameras, etc.) when the prices for new products are high and consumers are
doing research prior to the purchase Dell's home might be to jump into the market as consumer
electronic products begin to changeover into merchandises. The company can be prepared to capture
the second wave or level of consumers who have not taken on new technologies and products until
the prices lower and technology becomes accepted. This second mover strategy is a competitive
response to first movers' competitive actions and is illustrated by imitation. Taking the time to
monitor customer reaction to product improvements and avoiding the blunders and prices of new
product launch are compatible with Dell's successful business model. This approach also provides
Dell with time to develop more effective processes and technologies or create extra value for

Cost Leadership Strategy Of Ryanir
Since the very beginning of Ryanair's existence. the atmosphere was tense between British Airways
Aer Lingus and Ryanair. As Ryanair grew and grew the competitors got less and less money in
turnovers. After twenty years on the "field" in 2006,Ryanair offered Aer Lingus an all cash offer
which they did not take. The Employee Shared Ownership Trust voted to oppose the takeover of
Ryanair Holdings with 97%. Days after this takeover offer, Ryanair increased its stake from 19% to
25% which shares they bought from a US hedge fund. In 2008 they bought more shares and
increased it up to 29,82%. In the beginning of 2009, Ryanair had an offer for Aer Lingus, but again
they did not accept it. After all in 2015 Ryanair's board voted to accept the International ... Show
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To achieve it, companies must: improve process efficiencies;g ain unique access to a source of lower
cost materials; outsource appropriate functions and avoid certain costs altogether.
The airline industry has long been striking profitable deals with airports to keep certain routes open.
Ryanair's business strategy is made up of four guiding principles: employ a single type of plane,
constantly review overheads, turn aircrafts around quickly and abandon point's schemes.
In 2002 Ryanair ordered 100 Boeing 737–800 jets with options to buy a further 50 in a transaction
that was worth a price of $9.1bn. Ryanair secured a significant discount. With newer, more fuel
efficient planes than many of its rivals, Ryanair was able to hold down costs, charge lower fares and
pack jets with passengers who might not spend a huge amount on tickets but spend profitable sums
on food, hotel reservations and check–in charges. Ryanair has introduced a number of measures
which have helped the business make a profit of €503m in the past financial year. These include
being the first airline to implement baggage charges, working to eliminate the need for check in
desks and cutting the weight of its aircrafts; examining the possibility of larger aircraft doors, to
speed up

Business Goals Through Effective Community Management
The company agrees to the fact that it is important for the company to cater for business goals
through effective community management (Da Silveira, 2013) .The positioning of Sainsbury is
comparatively plain and it helps the users to quickly scroll through the main menu. The scale of
Sainsbury in the realm of operating in retail business is compact; hence this is reflected in the
website layout as well. However, position of Sainsbury is not cost effective, since it doesn't offer
interesting discounts.
It has been seen that both the companies try to foster loyalty programs that helps to widen brand
loyalty and builds brand equity by leaps and bounds. The loyalty card feature of Sainsbury takes into
account the intangible profitable feature that is invested in corporate social responsibility, rather than
monetarily and extrinsically benefitting customers directly. The layout in the website is user friendly
and is easy to interpret. Hence, this is how value creation and proposition is identified (Balmer,
2012). Sainsbury involves itself in customer's lives rather than conventionally providing services. In
this case, the provider's sphere is the extra Sainsbury funds invested for customer's sphere
(independent value– quality and price wise). Hence, a joint spherical value realm is created as
Sainsbury's through loyalty charity programs created as Sainsbury's through loyalty charity
programs (Gronroos & Voima, 2012).
Analysis of Positioning
Wal–Mart has been focusing

Porter Cost Leadership Strategies
Solymar Torres
Professor: Sherry Mathews
HR355DLBS1A2018 Planning and Staffing
02/15/2018
Research Essay
"Cost leadership strategies" Porter's generic strategies defines how a corporation follows good
benefits across its selected market choice. A corporation selects to follow one of two types of good
benefits, also thru minor expenses than the competition or by separating the along proportions
appreciated by clients to provide a higher value. A corporation as well selects one of two types of
these possibilities, whichever motivation or industry–wide, contribution its merchandise across
numerous market sections. The general plan replicates the selections completed concerning equally
the kind of good benefit and the choice. Porter claims that a corporate want to make two important
choices in starting its competitive advantage:
(a) To compete primarily on value.
(b) Broad a market targets it will aim at (its competitive scope).
A business strategy is used to generate a ... Show more content on Helpwriting.net ...
First, we need to know, what is Cost Leadership Strategy? Cost leadership strategy is primarily to
gain an advantage over competitors by reducing its cost. Cost of leadership is a strategy used by
businesses to create a low cost of operation within the situation. Cost Leadership Strategies is one of
the best strategies among the other Porter's other strategies. This strategy supports the business to
improvement in the market portion by putting lower price in judgement to other competitors. This
plan is probable by only putting cost price lower. Businesses can put on diverse means to place their
cost price less in estimation to other competitors. In evolving recruitment model, business must be
price conscious. To save some money the business must hire the employees at the minimum wage
and hope that they stay around after the trainings to avoid having to train increasingly, which can be

A Critique of Porter’s Cost Leadership and Differentiation...
A CRITIQUE OF PORTER'S COST LEADERSHIP AND DIFFERENTIATION STRATEGIES
Y. Datta
Ph.D., State University of New York at Buffalo
Professor Emeritus
College of Business
Northern Kentucky University
Highland Heights, KY 41099 (USA)
7539, Tiki Av.
Cincinnati, OH 45243
USA
Tel: (513) 984–1032 [Home]
Fax: (513) 984–1032
E–Mail: datta@nku.edu
A paper accepted for presentation at the 9th Oxford Business & Economics Conference to be held in
Oxford, England, June 22–24.
Table of Contents
A Critique of Porter's Cost Leadership and Differentiation Strategies 4
ABSTRACT 4
Key Words 4
INTRODUCTION 5
COST LEADERSHIP STRATEGY 5
Major Reliance on Modern Capital Equipment 7
Relying on the Experience Curve to Underprice ... Show more content on Helpwriting.net ...
Key Words
Michael Porter

Cost Leadership strategy
Differentiation strategy
Market Segmentation
Positioning
INTRODUCTION
A scholarly work that has received widespread attention and recognition in the Strategic
Management area––and beyond––is Porter's (1980, 1985) typology of generic competitive
strategies: Cost leadership, differentiation, and focus. These three actually fall into two basic
categories. The focus strategy calls for concentration on a niche or a narrow segment. But Porter
says that success in this strategy can be achieved either via cost leadership or differentiation. Thus,
cost leadership and differentiation are the two basic strategies in Porter's typology. These two then
are the subject of discussion in this paper. This contribution of Porter (1980, 1985) has had a deep
and pervasive influence on business theory and practice. Since then many strategists from diverse
fields have examined or made reference to his work. Most of this voluminous literature appeared
during the eighties and the nineties. The purpose of this paper is to offer a critique of Porter's work,
and a synthesis of this literature. Thompson and Strickland (2008, chap. 5) have expanded Porter's
generic strategies from three to five: overall low–cost provider strategy, broad differentiation
strategy, best–cost provider

Role Of Cost And Price Leadership For Tesco
P4 – IMPROVEMENT WORK Porters 5 Forces for Tesco. Cost and leadership Cost and price
leadership was developed by Michael porter and it was to help companies make use of a strategy
which would put them on top of their competitors known as a competitive advantage. The cost and
price leadership aim at increasing the profits and market share of Tesco's through charging their
customers lower prices, while still being able to make a profit on every sale they make. This is
beneficial to Tesco's as it will attract customers to their store rather than them going to a store such
as Morrisons to purchase products. An example of Cost and price leadership was when Tesco began
competing against Asdas, Tesco's decided to lower the cost of their prices which they cut 25% of the
price on over 380 items. This method bears advantages such as Increase in profits, increased brand
awareness, an expansion of there customer base. Disadvantages may include potential of a loss, it
may also lead Tesco's to making cheaper products Differentiation Strategy Differentiation strategy
are competitive strategies which Tesco can use to make themselves different within the market, it
can include Tesco's establishing different features, benefits and services which standout to the
customers. Differentiation strategy is the strategy which involves Tesco's identifying their buyers
most important demands and needs in relation to their products and making a way to suit that
product to that buyers needs in terms of

Strategic Issues Paper
RUNNING HEADER: Strategic Issues Paper
University of Phoenix
MBA 580
Dr. Reid Conner
This paper will identify the strategies of three companies that have demonstrated strategic processes
that are similar to Wal–Mart. The topics address in this paper will consist of the issues of different
strategies utilized by those companies will be addressed, and the outcomes. Based on the various
strategies the paper will explain how Wal–Mart could implement them to address the issues
identified.
General Electric–Supply Chain Management
General Electric (GE) is headquartered in Fairfield, Connecticut. The company is widely spread
over 100 countries and has a workforce of more than 300,000 employees worldwide. GE has a
diversified technology ... Show more content on Helpwriting.net ...
It was this strategy of having the lowest prices in town that has set Wal–Mart apart from all
competitors. The company has stuck to the vision of Sam Walton by offering the lowest prices to the
consumers in the retail industry.
Best Buy–Joint Venture
Many businesses and organizations may decide to form a joint venture. A joint venture involves
establishing a third company (child), operated for the benefit of the co–owners (parents) (Pearce &
Robinson, 2004). There have been many successful joint ventures among many businesses. Best
Buy announced that they would be strategically forming a joint venture with Britain's cellphone
retailer, Carphone warehouse. The CEO of Best Buy stated that the joint venture between the two
companies would be a financial gain for the company in the European market. This merger between
the two companies are said to be a major factor that will differentiate the company from the
competition (Washington Post, 2008).
Wal–Mart decided to form a joint venture with Bharti Enterprises, a joint venture for wholesale
cash–and–carry and back–end supply chain management operations in India, in line with
Government of India guidelines. This venture promises to bring great value to millions of farmers,
artisans, small manufacturers and retailers across India. We are pleased to be a partner in developing
this sector which is set to become a significant engine of India's

Strategic Management Of Walmart And Nordstrom
Comprehensive Learning Assessment: 2
Submitted By
Pratigya Adhikari
BUS 525: Strategic Management in a Globalized Economy
Submitted To
Professor:
Dr. Stephanie Hoon
Professor: Mahendra Shrestha
Sept 1, 2016
Analysis of Strategic Management of Nordstrom and Wal–Mart Abstract
The study shows the strategic management of Wal–Mart and the Nordstrom, both are the retailer of
United States but one is the low cost provider and another one is upscale fashion merchandise as
well as leader in customer service. In this paper, we will be comparing the mission statement,
competitive strategy of Nordstrom and Wal–Mart by their price, value, growth strategy, customer to
employee satisfaction, positioning and long term sustainability. Introduction:
Wal–Mart Stores, Inc is the largest and leading retailer in the world which was founded in Arkansas
in 1962. Recently Greg Foran is Wal–Mart U.S. President & CEO who has been involved in serving
people of 11,500 stores under 63 banners in 28 countries and e–commerce sites in 11 countries to
shop anytime and anywhere online at Walmart.com, through mobile devices and in stores including
various items from grocery and entertainment to sporting goods and crafts. An unwavering ... Show
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It shows that the company focuses on pleasing the customers and providing them a compelling
shopping experience which describes the company being a leading fashion specialty retailer. We can
learn that they believe in providing best possible services, selection, quality and value to the
customers at the best price as through compelling shopping experience. The statement clearly shows
that the company is customer oriented and is fully committed to provide quality service and time to
its customers (Nordstrom, Inc., 2016). Nordstrom thinks customer services as part of its culture as it
is focused on building customer loyalty and customer

Pidilite Leadership Advantage
Focused Strategy of Pidilite
Pidilite utilize a Cost Leadership Strategy, it share one vital trademark: it attempt to be appealing to
clients by and large. These endeavors to speak to expansive markets can be appeared differently in
relation to procedures that include focusing on a generally limit corner of potential clients. These
recent systems are known as center techniques of Pidilite.
The Nature of the Focus Cost Leadership Strategy
An engaged expense administration technique obliges contending in view of cost to focus on a
restricted business. Pidilite does not so much charge the most minimal costs in the business. Rather,
it charges low costs in respect to different firms like Tata Chemicals, Linde and so on that contend
inside of the ... Show more content on Helpwriting.net ...
In the most recent 5 years, the organization has accepted 80 top administration experts; today, the
family is almost withdrawn from the normal operations with marquee positions of CFO and CIO
being taken care of by experts. There are just a modest bunch of organizations that have the capacity
to graph such a move while at the same time holding the social ethos of the association. The
organization shunned giving pink slips to its workers yet rather re–talented the individuals in
repetitive positions. It would appear that Pidilite may be effective in scripting this transformation.
Acquisitions paying off well: Post 2000, Pidilite deliberately looked for chances to enter new corner
items in the glue and sealant space, basically through a series of acquisitions. Because of obligation
free asset report and a high working income business, Pidilite could bear the cost of these
acquisitions. A percentage of the acquisitions that have truly paid off well are M–seal, Steel Grip,
Roff among others. The hostility indicated by Pidilite can be seen from the table underneath. The
buyouts are a cognizant endeavor by the organization to check rivalry at all value focuses crosswise
over different

Lenovo Competitive Advantage
competitive advantage. According to Philip Kotler and Gary Armstrong, a company can attain
competitive advantage when the company is able to perform in one or more ways that competitors
cannot or will not match (Philip Kotler, Gary Armstrong, 2007, p182)
As Lenovo has been successfully internationalizing into other country by using joint venture and
FDI as their strategy, the new relevant proposed strategy that the company can use is direct
exporting. Direct exporting is considered relevant to be used by Lenovo because Lenovo can
maximizes their profit by cutting down cost in direct exporting by minimizing advertising, market
research, and research and ... Show more content on Helpwriting.net ...
As Lenovo wanted to attain competitive advantage through cost leadership strategy, they first have
to cut down their cost in order to be able to sell product with lower price. As the Lenovo is
manufacturing their product in China which is one of the low cost country in the world, they can
easily cut down their production cost there. Hence, the pressure of global integration in cost
reduction is identified there.
The advantages that global integration can give to Lenovo through cost leadership are that they can
help Lenovo to save costs and achieve global efficiencies. They can also improve the quality of
product and processes. High quality product promotes global brand recognition and gives rise to
customer preference and efficient international marketing programs. They create economies of scale,
which can result in lower operational costs, higher quality standardized product and homogenization
consumer

Case Study Of Key Issues Associated With Adnams
Based on the case study, the following are the identified key issues associated with Adnams':
competitiveness issue and diversification issue.
About the competitiveness issue of Adnams, it can be seen on the case that Andy Wood (Managing
Director and Chief Executive of Adnams) points out that it is hard for them to compete with the
macro– or micro brewers. There are two main reasons. Firstly, Adnams is a mid–sized brewery
business, and it is run by two families, which means it also has strong family control, in addition,
Adnams more focus on the local market. Therefore, it not easy for Adnams to acquire capital
advantage and market advantage when compete with macro–brewers. Another reason is that
Adnams does not have good measures for cost ... Show more content on Helpwriting.net ...
Adnams is a mid–sized brewery manufacturer in Southwold, and also owns and operates hotel and
pubs mostly in and around Suffolk and Norfolk. Adnams use the local environment, such as
beautiful scene to linking with its business to help Adnams build image of brand. For example, some
hotel rooms are named 'the lighthouse rooms' because they are near by the lighthouse (a famous
landmark in Southwold). Besides, Adnams also consider about customers' concern of healthy food,
so they put their product and local scene together on the advertisement and annual report to give
customer a positive image. In addition, Adnams also try to shorten the distance between supplier,
customer, and itself to better meet customer needs, thus increasing customer satisfaction and

How Would You Describe Mcdonald's Business Strategy?
1. Answer the questions for the case "integrating McDonald 's Business, Human Resource, and
Staffing Strategies" page 49, Chapter 2. [ 15 Marks]
Questions 1: How would you describe McDonald 's business strategy? What are the foundations of
its competitive advantage?
Answer: McDonald's business strategy is a specialization strategy. The organization is built on a
foundation that gives it a competitive advantage and a business strategy that is consistent, flexible,
and specialized. McDonald's niche market is people. According to the case study, people are the
company's most important asset and its success depends on the satisfaction of its customers which
begins with workers who have the attitudes and abilities required to work ... Show more content on
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The dimensions along which a firm can differentiate include the image of the firm's product, product
durability, quality, safety and usability. Organizations pursuing this type of business strategy try to
develop a competitive advantage based on product innovation. The strategy requires employees to
continually develop new products and services to create an organization's advantage in the market.
These companies create and maintain an environment that encourages employees to bring new ideas
into the company. III. Specialization Strategy
A specialization strategy focuses on a narrow market segment or niche and pursuing either a
differentiation or cost leadership strategy in that market segment according to Jean Phillip and
Stanley Gully. To be successful, businesses following a specialization strategy are required to know
their market segment very well, and often enjoy a high degree of customer loyalty. The company
can be successful using this strategy if it results in either lower costs than competitors serving the
same niche or an ability to offer customers something that other competitors cannot. Firms pursuing
a specialization strategy often try to develop a competitive advantage based on customer intimacy
and try to deliver unique and customizable products or services to meet their customer's needs and
increase their

Ikea Strategic Analysis
IKEA is the world's largest furniture retailer of 'knock down' furniture with 300 stores in more than
35 countries. It was founded by Ingvar Kamprad of southern Sweden whose main innovative idea
was 'to offer home furnishing products of good function and design at prices much lower than
competitors by using simple cost–cutting solutions that did not affect quality of products so that as
many people as possible will be able to afford them. ( www.ikea.com). He used every opportunity to
reduce costs without compromising on ideas and quality.
IKEA used design, their main competency, to secure the lowest possible price by starting design
with a functional need and price then using knowledge of innovation and low cost manufacturing ...
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A focused cost leadership strategy according to Ireland et al (2006) is 'an action plan the firm
develops to produce goods and services for a narrow market segment at the lowest cost'. IKEA
focuses on applying the techniques needed to achieve this cost leadership such as bulk buying,
economical sources of supplies, low–cost logistics and store location while at the same time
concentrating on understanding and satisfying the needs.
Although it is a cost leader, IKEA also offers some differentiated features that appeal to its target
customers, including its unique furniture designs, in–store playrooms for children, wheelchairs for
customer use, free buggies, reasonably priced restaurants and cafes and extended hours making
shopping at IKEA an experience. Thus, IKEA focused cost leadership strategy also includes some
differentiated features with its low–cost products thereby making it a hybrid strategy. (Hitt et al,
2009: 121).
Part of keeping costs down IKEA strategically located its global distribution retailing network near
container ports and major truck and rail routes. In most instances, they own the large stores but in
order to be flexible and adaptable to penetrate new markets they also facilitate franchises where
there are risks to entry due to unfamiliarity or hostility to the IKEA concept. Their stores have been
described as 'theme parks masquerading as a furniture outlet' (Margonelli, 2002: 112)
The

Walmart Is A Global Employer Essay
Walmart is a global employer in the retail industry that employs employees all over the world. We
believe Walmart can improve by implementing the following strategies: Cost leadership strategy –
this is what Walmart is known for, Differential strategy – a big portion of what how Walmart stands
out from others (is different) is because of their pricing, which kind of reflects #1 (cost leadership),
Value–creating strategy – again they create value because consumers enjoy their prices and
offerings, because of their supplier diversity ..which again kind of reflects #1 (cost leadership),
Revamp the external view of its workforce – this one is different from the others and we all know
how much Walmart has been in the news for their treatment of employees and some of their policies.
Walmart needs to improve their image in the public 's eye. However, the company is in the midst of
this strategy. We only know this because one of our group members worked there. They were doing
this strategy by adding an employee dress code to make their employees more noticeable to the
public, which often complained of not being able to find an employee when needed. Additionally,
Walmart has a bad imagine due to the fact their workers were paid very little. A fair amount of their
workers were working full–time and qualifying for public aid due to their wages. Walmart wanted to
repair their imagine a bit in the public eyes. They felt their best strategy was to increase the
minimum pay of their

The Vision And Purpose Of Wal-Mart
First, I mention the Wal–Mart company's mission, vision and Purpose . Next, Values, the basic
philosophies of the company (Respect for the individual, Pursuit of excellence and Service to our
customers). Then, Principles, rules of the company (The "Sundown Rule and the "Ten Foot Rule")
Then, Core strengths, the main strategy 'everyday low prices', 'Equate and great value 'strategy.
Then, Sustainability competitive advantage (Wal–Mart supports the efforts of the local community –
Commitment to the environment).
After that, the new changes in Wal–Mart business strategy by the CEO, Doug McMillion
(Enhancing the flexibility of the shopping experience, Improving groceries and Increasing focus on
customer services). Finally, I discuss the strategy ... Show more content on Helpwriting.net ...
Core strengths: Core strengths, which are a strong part of the corporate culture, is Sam Waltons'
"Pricing Philosophy "This confirms to selling items for less than its competitors the company's
strategy, "Always." [4] [5]
The Wal–Mart business strategy on the philosophy of "everyday low prices" for the company. In
other words, Wal–Mart is seeking labor cost leadership strategy has enabled economies of scale
obtained by the company in a great extent. Effective use of the channel online sales contributes to
the level of cost–efficiency of retail operations and about 75 percent of sales come from non–
walmart.com store inventory [6] [11] .
"Equate and great value" are products manufactured and sold by Wal–Mart .they are equal to known
brands ,but sold in low price because they are manufactured in Wal–Mart factories.
Variety, price and access continuous improvements are the basis of the work of Wal–Mart's strategy.
In simple terms, Wal–Mart strives to offer the widest choice of products and the cheapest price,
giving customers the opportunity to choose the most convenient channel to facilitate the

Related Cost Leadership And Customer Needs
Cover page
Cover mainly – related Cost leadership and Customer needs
Questions :
1. We have many other services in each of the services.... But their description is not related to the
services.. Shud i include them???? not included here... :(
2. Can imaged be inserted into the sections??
3. Should I mention au.nec.com only or different urls need to be included at respective instances??
4. If I get more than 7 pages for only info ... what are the ways to trim the content in the file??
Corrections needed – NEC to NEC Australia or only NEC at all the instances
Organization or Organisation – need make it uniform also need to check the starting letter is small
case or capital case OR change it to CUSTOMER/CLIENT instead of ... Show more content on
Helpwriting.net ...
By providing a combination of products and solutions that cross utilize the company 's experience
and global resources, NEC 's advanced technologies meet the complex and ever–changing needs of
its customers. NEC brings more than 100 years of expertise in technological innovation to empower
people, businesses and society.
(link – https://au.finance.yahoo.com/news/nec–marks–publication–2013–csr–075800196.html)
Not all service organisations are created equal in their ability to support the business. NEC is a well
established, certified and experienced organisation with the national presence and scale to provide
services, maintain and support telecommunications systems and networks.
Service concept:
The below are the Services provided by the NEC
1. Managed Services
2. Network Services
3. Professional Services
4. Systems Integration
5. Technical Services

Link – http://au.nec.com/en_AU/solutions/services/index.html
1. Managed Services:
i. Applications Managed Services (AMS):
NEC Australia offers 24/7, business hours and after hours support for applications and systems
enabling you to maximise return on your IT investment and ensuring your systems run at an optimal
performance level.
ii. NEC Cloud solutions
The NEC Cloud Solution portfolio in Australia offers you a comprehensive range of cloud services
and solutions to support your business and technology requirements at

Why Does Each of the Five Generic Competitive Strategies...
STRATEGIC MANAGEMENT 1
Question
Why does each of the five generic competitive strategies require a different set of
product/market/distinctive competency choices? Give examples of pairs of companies in
Zimbabwe's computer industry and food industry that pursue different competitive strategies.
Answer
The five generic competitive strategies have become some of the most used competitive strategies in
contemporary corporate management. Michael E. Porter (1980) described competitive strategy as"...
being different. It means deliberately choosing to perform activities differently or to perform
different activities than rivals to deliver a unique mix of value".
This presentation seeks to examine why each of the five generic ... Show more content on
Helpwriting.net ...
| |offer niche buyers something |
| | | | |customized to their tastes (focused|
| |

Cost Leadership In The Golf Industry
4.3 Maturity phase
The maturity phase is when growth tapers off from the dramatic levels that are seen in the growth
phase (Porter, 1980). The market leader position becomes clearly defined and is often seen as the
dominate name within the industry in the eyes of the consumer (Kolter, 2012). The focus of the firm
in this phase is that of maximising profits that were forfeited in the growth phase in favour of market
share and seeking to attain internal process efficiencies to secure the maximum possible profit
margin (Hill, 2013).
4.3.1 Cost leadership approach
As the overall size of the industry does not increase at a significant rate the focus then becomes on
attaining a larger share of the overall market. On way of doing this is to compete ... Show more
Those residing in niche areas are often smaller firms and would be aimed at maintaining
differentiated offerings that consumers will still desire in decreasing amounts. Both of these
approaches can be profitable and often result in reduced competition as the firms involved seek to
maintain market share and not actively pursue that held by others for fear of reprisal.
Panasonic who operate in many industries employ this approach in particular in the Australian
commercial refrigeration market. This industry is clearly in decline with many competitors exiting
the market in recent years. Panasonic as instead been acquiring rivals with a view to being able to
control the decline of the industry and maximise returns for as long as possible. This affords them a
degree of cash flow they are able to divert into developing new industries to begin this cycle

Strategic Choice and Evaluation
L'Tanya M. Williams
STR/581
October 3, 2012
Pitchiah Balasubramanian
The paper will present potential alternatives Vanguard Health Systems (VHS) must consider to
realize growth. It will also seek to identify the best value discipline, generic strategy, and grand
strategy for the organization. Upon the investigation of the various alternatives, a recommendation
of a strategy or a combination of strategies will be presented. A growing trend among many
businesses is through mergers and acquisitions. No longer are the days when one business can to
dominate totally an entire industry. The health care system is not exempt. External environment
factors play a significant role on how ... Show more content on Helpwriting.net ...
They are not the followers, emulators, or imitators. This approach is the most competitive among the
all the value discipline strategies and with it comes the advantages of knowing that it is one of the
leading attributes needed in maintaining and gaining competitive advantages and future growth.
Generic Strategy The generic strategy approach may be applied to organizations of all sizes and is a
one size fits all approach. It can be divided into three types of approaches may be applied as
alternatives for a given organization or industry as an improvement for future growth. The cost
leadership strategy seeks to improve profit margins by bringing down the costs of producing while
enabling the organization to still charge market prices. They also focus on increasing the market
shares through lower pricing, enabling the organization to continue to reach profits because of
reduced costs. As with any organization the goal is to minimize cost directly to the organization
providing the delivery of products or services. According to Barney (2007) low cost leadership
strategy takes pride in initiating its costs advantage abilities to charge lower prices while reaping the
rewards of higher profits. Differentiation approach refers to the organizations unique designing
creations. These approaches appeal to the customers who prefer upscale and exquisite specialty
products or services. These include

Cost Leadership For The Generation Of Revenue
What is cost leadership? Describe the role of cost leadership in the generation of revenue. Use
Walmart as a case study and apply the construct of cost leadership. The goal of a cost–leadership
strategy is to reduce the firm's cost below that of its competitors. The cost leader, as the name
implies, focuses its attention and resources on reducing the cost at which it is able to offer a product
or service (and still make a profit in the long term). The cost leader optimizes all of its value chain
activities to achieve a low–cost position. Although staking out the lowest–cost position in the
industry is the overriding strategic objective, a cost leader still needs to offer products and services
of acceptable value. Firms do not have to sacrifice revenue to be the cost leader since high revenue
is achieved through obtaining a large market share (Porter, 1979, 1987, 1996; Hooley et al., 2004;
Bauer and Colgan, 2001; Hackett, 1996; Reid et al., 1993). Lower prices lead to higher demand and,
therefore, to a larger market share (Helms et al., 1997). As a low cost leader, an organization can
present barriers against new market entrants who would need large amounts of capital to enter the
market (Hyatt, 2001). The leader then is somewhat insulated from industry wide price reductions
(Porter, 1980; Hlavacka et al., 2001; Malburg, 2000). History of the creation of one of the largest
retail chains in the world of Wal–Mart is associated with the name of Sam Walton. In the mid–1950s

Generic Business Strategy Is Jetblue Pursuing : Cost...
1. What type of generic business strategy is JetBlue pursuing: cost leadership, differentiation, or
integration?
The type of business strategy that JetBlue is using is the integration business strategy. One of the
reasons for the success of JetBlue implementing this strategy is because of trading off low cost and
differentiation. Under this strategy, JetBlue offers differentiated products and services at low costs
(Team, 2015). Because JetBlue's plan features are offered at lower prices than its competitors, the
company has managed to achieve larger economic value. JetBlue implemented the differentiation
strategy by including unique features such as free Wi–Fi capabilities.
This addition highlights the company's high–technology. By offering high–technology features,
JetBlue was attempting to enhance their differentiation appeal. The inclusion of being
technologically advanced helps eliminate costs and has been one of the reasons they have high U.S.
ratings. JetBlue is primarily using the integration strategy by copying Southwest Airlines' cost
reducing activities. JetBlue also cut costs by flying longer distances and transporting more
passengers per flight than their competition.
2. What challenges is JetBlue facing with its chosen business strategy? What is the cause of these
challenges? How should they be addressed?
With its chosen integration business strategy, one of the challenges that JetBlue is facing not being
able to create value anymore for the

The Blue Nile Strategy: Global Marketing Strategy
3.1 Blue Nile Strategy Blue Nile's strategy is designed to increase their brand recognition through
their product and sales, and invest to expand their operation internationally. Besides that, Blue Nile
do offer lower price for their product where employ efficient of their supply chain to decrease their
overhead cost while maintain its equity quality to produce more customer traffic and to promote
repeat purchase which target current customer than create new customers. Besides that, Blue Nile
has also provide well educate information about diamond and rich information online shopping
experience for new customer to increase consumer knowledge to increase their internet traffic too.
3.2 Generic Competitive Strategies use by Blue Nile Generic ... Show more content on
Helpwriting.net ...
This strategy make Blue Nile manage well in inventory management and merchandising which
allows Blue Nile to cut off those diamond prices in order to boost their sales which lead them
success.
3.2.2 Focus Strategy Blue Nile has applied focus strategy as one of the generic competitive strategy
which target on specific customer to satisfy their needs in niche market. Although Blue Nile able to
offer low price of diamond, but they believe that still not everybody could able to purchase diamond
or gems, so they rather focusing expand in niche market but not in differentiate market which they
believe could bring them more profit with effective less advertisement and operating cost.
3.2.3 Differentiation Strategy Blue Nile able to form a good relationship with suppliers and they
could obtain offer from those suppliers who just provide to them of some unique jewellery or gems
where customer cannot purchase or order it from other their competitors. Blue Nile also provide
various of contact method to let consumer could contact them through various of ways which can
found on their website which include, email, phone and live chat which Blue Nile has provide
professional training to their staff which is unique compare to other

Organizational Strategy
"Organization Plan & Management Team"
The company that I have been working on opening in my hometown is called Little Rascal's Resale.
Although it is a large dream of mine to grow the company into a nationally recognized franchise; it
is understood that the company will start with just one location. The one company will have simple
make up that will only need five to seven employees. The employees will consist of a president and
CEO, a general manager, a team manager, and two to four entry level store employees. The amount
of employees is a small number but, as the store grows the number of employees that the store will
need will grow as well. With a small amount of employees it is vital that all the employees must
always ... Show more content on Helpwriting.net ...
Little Rascal's Resale is the only company that takes products from the consumer in trade for cash or
store credit. Customers recognize the competitive pricing and the core values of the company and
this makes them value creating. At this point there is not a corporate level strategy for the company
since it is a small business that is privately owned. As time passes the company will expand and
recreate a staffing procedure to ensure that all aspects of the business are covered by a member of
the staff. I believe that the organizational plan for Little Rascal's Resale is one of simplicity that is
definitely capable of ensuring success for the company as it starts. This organizational plan is
supposed to represent the first three to five years of the company. By year five the expansion plan
and corporate plan will be created and implemented.
References
Cost Leadership Strategy. (n.d.). Cost Leadership Strategy. Retrieved June 1, 2014, from
http://www.costleadershipstrategy.com/
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (1999). Strategic management: competitiveness
and globalization (3rd ed.). Cincinnati: South–Western College Pub..
The McKinsey 7S Framework: Ensuring That All Parts of Your Organization Work in Harmony.
(n.d.). The McKinsey 7S Framework. Retrieved May 30, 2014, from

Cost Leadership Strategy Of Walmart
Section–1 Company Overview Walmart is a multinational retailer that sells general US based
multinational retail company that sells general range of products and groceries. Walmart is ranked as
the worlds largest retailer, 3rd biggest public company and the company that has employed most
number of people and the most valuable company in the world. Wal–Mart has a highly complex, but
efficient, supply chain. In this essay we will assess Walmart from the perspective of an investor and
a lending organization. Wal–Mart started in 1962 by Sam Walton, it was later incorporated after 7
years back in 1969, currently Walmart has 11,000 stores in 27 different countries and also hosts e
commerce websites in 10 different countries, during the fiscal year ... Show more content on
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Internationaly walmart can afford to tweak its strategies to adjust to the countries market but it still
has its major sources of income in the United States, as per Walmart's annual report the net profit
generated from 6000+ stores world wide was $6,694 Million compared to $21,500 Millions from
4000 stores. In 1992 Wal–Mart started expanding in the international markets; they inserted Mexico
within 1992 by using a joint enterprise with Mexico's most significant retailer, Citra. The next thing
was to enter Canada, which they did within 1994. Wal–Mart continued to develop internationally,
going into China within 1996. Nowadays they're also in South America, Argentina, India, Honduras,
Nicaragua, Costa Rica, British, El Salvador, The Japanese, and Chile along with Guatemala in the
total associated with 14 unique countries beyond your U.

Strategic Choice and Evaluation of Target Corporation
Target Corporation is one of the most major merchants store in the world. Target is recorded to be
the sixth largest retailer within the United States. Founded by, George Dayton in the early 1900's in
Minneapolis, Minnesota. Target Corporation is a leading merchant store that supplies a variety of
products, which includes everything from clothing to shoes, health and beauty, and even electronics.
It is a corporation that remains on–top, and develops day–out. It is a brand that is well known and
continues to raise the bar each year effectively. Target Corporation will need to grow the company
approaches built on the quality of the rank, ethnicity, and ... Show more content on Helpwriting.net
...
When a business can provide a lower cost, then the business can have the ability to lower their price.
Providing a better pricing system, along with sharp value products can only increase the chance of
growth and customers' overtime.
Grand Strategy
A grand strategy is "a master long– term plan that provides a basic direction for major actions
directed toward achieving long– term business objectives" (Pearson & Robinson, 2011, p. 187).
Nonetheless, the goals that are defined above recommended that the organization will need to apply
two strategies in order to be effective. Target will need to pledge on applying human resource
improvement as well as providing cost leadership to effectively expand the company competitive
advantage all around.
Human Resource Development
Human Resource Development (HRD) is essential, and applies an important factor to maximizing
employee proficiency to accomplish the main goal of a company. HRD has provided employees
with current proficiency. HRD supplies a way to kept track of increasing cultured information as
well as production technologies. HRD will provide ways to enhance overall employee ability.
Therefore, once competitive advantage is attained, Target marketplace can swiftly take a down–fall
without the company identifying methods to withstand their current advantage. Nevertheless, it is
important that Target has the most

Customer Focused Low Cost Leadership Strategy
Customer focused low cost leadership strategy Low cost strategy is centered on the capability of the
company to produce and deliver products of competitive quality at lower costs. Cost leadership
strategy is much more than cost reduction initiatives that get lot of prominence in strategic planning
and review session of any company as a means to improve the bottom line of a company by
improving its efficiency. Some companies use their efficient cost structures to protect their markets
from the competitors by responding to competitors' move of making in–roads in the market space by
reducing prices. Such reactive response may make a company predominantly inward focused.
Positioning – low cost strategy Better way to strategically position a ... Show more content on
Helpwriting.net ...
Cutting on such frills may help in improving the bottom line. But cuts on frills accompanied by
thrust on factors where company's offering is below the customers' expectations provides an
excellent opportunity for cost cutting and serving enhanced value to the customers, which may draw
customers from outside the current market space, just on the boundary of niche segments. Most
popular no frills strategy is pursued by Southwest Airlines which based its strategy on clear
understanding of the segment of customers it was going to serve by operating the flight services at
lowest fares and prompt schedules. The clear understanding of expectations of the segment it was
going to serve and competitive value proposition that this segment was being offered by the aviation
industry opened up the real opportunity of lowering its costs and yet maximizing the value of low
fares and adherence to schedules for its customers by keeping clear of facilities like baggage
transfers, meals, seat arrangement etc., which any way the customers were not bothered about. A
company having low cost leadership when extends its thinking to the value its customers expect, can
further strengthen its strategic position in the

The Fashion Channel ( Tfc )
Fact and Issue:
The Fashion Channel (TFC) is on the situation of slow growth, the CEO Jared Thomas realized
change is desirability needed for achieving the long–term growth and staying on leadership position
in market. The success of TFC's business model attracts new businesses enter the same market that
increases competitive stress. TFC provides 24 hours fashion programming to broad viewers, at one
point TFC promotes "Fashion for everyone". TFC receives fair viewers' ratings and charge for a
basic price, while competitors like lifetime and ESPN receive higher ratings and charge a premium
fee. CEO Thomas knows the problem and hired an experienced marketer – Dana Wheeler as senior
vice president of marketing to restore TFC 's leadership in market and to jump up revenues.
The five types of research
The dynamic of Ad sales and the stable affiliate fee are major revenue to TFC; the viewers' rating
affects the Ad sales. Wheeler study these research materials before making a decision. First exhibit,
viewers' demographics and competitor comparison, female viewers are more than male viewers. The
second exhibit, GFE Associate: National Consumer Survey. This tells the cable subscribers and
consumer's interests and preference, the high percentage of not favor against TFC. The third exhibit,
GFE Associates: Analysis of Attitudinal Clusters in U.S. Television Households for TFC. It indicates
type of viewers' attitudes likely toward to buy. The fourth exhibit, the Ad Revenue

Essay on Operation Strategy at Galanz
S w 8B10D05 Teaching Note OPERATIONS STRATEGY AT GALANZ Dr. Kokin Lam and
Professor Xiande Zhao wrote this teaching note as an aid to instructors in the classroom use of the
case Operations Strategy at Galanz, No. 9B10D005. This teaching note should not be used in any
way that would prejudice the future use of the case. Richard Ivey School of Business Foundation
prohibits any form of reproduction, storage or transmission without its written permission.
Reproduction of this material is not covered under authorization by any reproduction rights
organization. To order copies or request permission to reproduce materials, contact Ivey Publishing,
Richard Ivey School of Business Foundation, The University of Western Ontario, ... Show more
To introduce students to the concepts of order winners, order qualifiers and operations
priorities/objectives. 2. To show how operations priorities should reflect customer requirements and
affect the way a company competes. 3. To demonstrate how a company can gain competitive
advantages through a low–cost strategy and how to support a business strategy using operations
strategy and capabilities. 4. To show students how a company can build multiple capabilities over
time and how a company's strategy and operational capabilities can change over time. 5. To provide
students with the opportunity to analyze trade–offs involved in making strategic, operational and
marketing decisions as a business expands from the domestic to the global market and from an OEM
to an ODM and an OBM. 6. To challenge students to develop coherent action plans that address
future growth objectives. 7. To help students understand the tremendous opportunities and
challenges of managing operations and supply chain activities in China. SUGGESTED
ASSIGNMENT QUESTIONS 1. What were the order winners/order qualifiers for Galanz in the
microwave oven business during the early stage of its development? 2. Rank the importance of
Galanz's operations objectives of cost, quality, flexibility, delivery, service and innovations. How
has the importance changed over the years? 3. What is the role technology has played in the success
of Galanz? 4. What are Galanz's competitive and

Swot Analysis Of Home Depot
Home Depot
Home depot is one of the largest retail stores in America battling big companies like Walmart,
Lowes and target. However, home depot is leading its industry of home improvement supplies
retailing company which competes for the industry market share mostly with Lowes.
Home depot was founded by two men, Bernard Marcus and Arthur Blank, who had lost their jobs in
1978. One day while having coffee thought of a business idea. Blank and Marcus wanted to create a
store that incorporated their DIY (do–it– yourself) vision. They wanted their store to specialize in
building materials and lawn and garden equipment. This was just going to be something small for
them, something that was going to generate some sort of income for them
They were able to start off opening 3 stores around Atlanta, Georgia in 1979 and they opened four
more stores in South Florida in 1981. The stores became a huge success that they generated up to 50
million dollars that they decided to go public. By 1983, Home Depot had been really successful that
they opened stores in Arizona and Louisiana. Their sales were growing year by year making up to
250 million dollars that they decided to make another expansion to California, northeastern U.S, and
Canada. They were growing rapidly and they were taking most of the market share in the industry
that they reached 500 operating stores by 1997. These stores generated revenue of more than a
billion. The store started expanding outside the US to countries like

Lenovo
competitive advantage. According to Philip Kotler and Gary Armstrong, a company can attain
competitive advantage when the company is able to perform in one or more ways that competitors
cannot or will not match (Philip Kotler, Gary Armstrong, 2007, p182)
As Lenovo has been successfully internationalizing into other country by using joint venture and
FDI as their strategy, the new relevant proposed strategy that the company can use is direct
exporting. Direct exporting is considered relevant to be used by Lenovo because Lenovo can
maximizes their profit by cutting down cost in direct exporting by minimizing advertising, market
research, and research and development. ... Show more content on Helpwriting.net ...
As the main reason for Lenovo using the new strategy is to attain competitive advantage, the
company first have to gain economic of scale which can done by reducing production cost and
selling product with lower price. As Lenovo is manufacturing their product in China which is one of
the low cost country in the world, they can easily cut down their production cost there. Hence, the
pressure of global integration in cost reduction is identified there. The advantages of global
integration for Lenovo is the company can achieve global efficiencies and also improving the
quality of product and processes. As high quality product will promotes global brand recognition
and gives rise to customer preference and efficient international marketing programs. This will
eventually create economies of scale, which can result in lower operational costs, higher quality
standardized product and homogenization consumer

Cost Leadership Strategy: Tata Steel And Corus Dequisition
One strategy for Tata Steel to improvise its strategic management is business–level strategy.
Business–level strategy are intended to create differences between the firm's position relative to
those of its rivals. Differentiation and cost leadership are distinct strategic positions.
The goal of a differentiation strategy is to increase the perceived value of goods and services so that
customers will pay a higher price for additional features. While the goal of a cost–leadership
strategy is to reduce the firm's cost below that of its competitors. Differentiation strategies can
differentiate based on superior quality and unique features, image of prestige. A company that uses
differentiation strategy can achieve a competitive advantage as long ... Show more content on
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One of them was achieving cost leadership strategy. The deal between Tata Steel and Corus was one
involving two major steel producers in the world. After the acquisition, the total amount of steel
produced by Tata Corus combined allowed Tata Steel and Corus to move up to the sixth rank in
terms of global production. Few of the ways in which Tata Steel and Corus deal allowed a cost
leadership strategy are control of production and overhead costs and minimization of marketing and
Research and Development cost. Tata Steel are control of production and overhead costs. The deal
allowed large amounts of production facilities under one entity which allowed Tata–Corus to
achieve economies of scale. As a result of which various costs related to production of steel could be
reduced. For minimization of marketing and Research and Development cost, Corus ideally has a
good stronghold in Europe especially United Kingdom. Tata steel has a good stronghold in the
Indian subcontinent. The deal allowed both the companies to expand their presence geographically.
As a result of which marketing costs decreased to a great extent. There also was exchange of
technical knowledge related to steel production which further led to a reduction in Research and
Development

Toyota Cost Leadership Strategy
There are many different organization that uses cost leadership, differentiation and innoviation
strategy to achieve an operational excellence but before listing them and explaining how they use
them to achieve operational excellence it is important that we explain these different strategies.
–cost leadership strategies –this is a strategy that was developed by mihael porter which describes a
way to establish the competitive advantage. This is a strategy used by firms to achieve lower cost of
operation in the industry which is often driven by company efficiency, size ,scale , scope and
cumulative experience. Cost leadership also exploit scale of production and produce highly
standardized product using high technology
– Differentiation strategy– this is a strategy used by firms that offers unique attributes that are
valued by customers and that customers perceive to be different and better than other competitive
product. More over ... Show more content on Helpwriting.net ...
Cost leadership strategy– Toyota uses cost leadership strategy to drive it cost lower through the just
in time (JIT) manufacturing method which they also refer to as Toyota Production System which is
abbreviated an TPS. This strategy addresses cost leadership strategy by mianimizing waste ,
inventory cost, and respond time. With this the business achieves maximum business efficiency.
Differentiation – Toyota is the largest auto maker in the world and the key reason for the companies
success is as a result of their differentiation strategy this includes introduction of a highly efficient
manufacturing model to increase the performance of its vechiles and offer offer their customers with
increased value. Another differentiation strategy is the fact that the company was able to produce
vehicles for many different market segment and price

Wal Mart 's Cost Leadership Strategy
1. Wal*Mart's basic strategy to create a competitive advantage in the discount retailing industry in
the United States during the 1970s–1990s was the cost leadership strategy. With this, the Company
was successful in using its strategy of "everyday–low–prices" to attract customers. Wal*Mart's
strategy of "everyday–low–prices" was to offer products at a cheaper rate than its competitors on a
consistent basis, rather than relying on sales. The Company was able to achieve this due to its large
purchasing power and efficient distribution channel. Wal*Mart's cost leadership strategy was
successful for many reasons. First, the Company was very competitive in terms of prices. Second,
combined with low prices compared to its competitors, ... Show more content on Helpwriting.net ...
Furthermore, of the top 15 discount department stores in 1993, 2 were in Chapter 11 and 2 emerged
from Chapter 11. Other factors included a lack of differentiation in product offerings, low switching
costs for buyers, competitors had volume driven strategies aimed at obtaining market share at the
expense of profitability, creating price wars, and a high pressure to increase volume to generate cost
efficiencies. Based on Porter's Five Forces Analysis, potential entrants was high with high entry
barriers. With this, competitors had access to distribution channels, were established with multiple
locations, had strong brand name recognition, had financial strength to fend of competitors, and had
high capital which resulted in high buying power and high economies of scales. Based on Porter's
Five Forces Analysis, buying power was low to moderate. With this, customers had a high
availability of substitutes as they could shop elsewhere and had ease of switching between
competitors. There was a lack of differentiation among competitors as competitors competed on
price. Based on Porter's Five Forces Analysis, substitutes was low. With this, prices and quality of
substitute products were very competitive, performance of substitute products were similar, and
there were low switching costs for buyers. Based on Porter's Five Forces Analysis, suppliers was
low to moderate. The top 5 competitors accounted for 71% of

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