Strategy Evaluation : Niche Cost Leader ( Low Technology ) Essay

Similarly, buyers in the Performance and High End segments feel that performance and size are also important but the product’s reliability is most important to them. We chose to operate in these growing markets because neither segment is price sensitive and they are more concerned with overall quality and innovation which is our company’s underlying focus. Our objectives will be achieved by relying heavily on our sales and promotions team as well as increasing our spending in research and development to ensure the best, most up-to-date products for our customers. Brand awareness and accessibility is vital to our company because we are now competing against four other competitors in the same industry and customers need to be able to quickly recognize our brand of sensors.

We run a tight operation with extremely low overhead which enables us to pass on dramatic savings to our members.” Jim Sinegal (corporate, 2012).

In today’s highly competitive market, the continuous changes that are occurring in the social, politic and economic environment create serious challenges in the corporate world. Corporations cannot afford to do business as usual if they want to remain in the game and be successful. In order to achieve their goals and objectives, they need to evolve, adapt, learn and apply different new strategies that will help them secure long-run success and performance. Among those strategies, we are going to discuss ten of them and their advantages in connection with corporation’s goals and objectives.

2/13/2017: Broad cost leader strategy is chosen by the team. The strategy’s impact on marketing to keep low costs and maintaining competitive pricing were discussed.

In cost leadership a firm will set out to become a low cost producer in its industry. A low cost producer must find and exploit all sources of cost advantage. If a firm can achieve and sustain overall cost leadership then it will become an above average performer within its industry. The sources of cost advantage are varied and depend upon the

This book makes it easy to implement the strategies in your company. If you know Steve you know he is the ultimate example of

A retailing company with a mission to continually provide members with quality goods and services at the lowest price possible, Costco Companies, Inc.’s business model was to generate high sales volume and rapid inventory turnover by offering members very low prices on a limited selection of nationally branded and select private-label products in a wide range of merchandise categories. It is very much appealing as small businesses are the definite target customers. Low price definitely attracts more customers, and is strategically advantageous to this kind of industry.

Strozier Sensors Incorporated (SSI), a multimillion-dollar company established in 2016 because of the government splitting a monopoly company into six identical competitors. As a way to differentiate itself from the other companies, SSI developed a Niche Differentiator business strategy with a focus on the High Technology customers (Foundation Online Guide, n.d.). This purpose of this business strategy is to help SSI gain a competitive advantage. The high technology products will be created with easy accessibility, excellent design, and high awareness. SSI core business units consisted of Research & Development (R&D), Marketing, Production, Human Resources (HR), and Finance. R&D is mainly responsible for making product improvements and creating new products that will meet the needs of our high technology customers concerning age, price, size, and performance. The Marking team is responsible for the proper sales forecast, pricing the products at a premium cost, and spend top dollars in sales and promote to aid in making sure our customers are familiar with our product. The Production team is responsible for scheduling the production of inventory based on the marketing forecast and making sure capacity if available to meet the demand without overtime. The Human Resource team works to make sure production has the proper complement. The caliber of employee is based on the amount of money spent for recruiting and training. The Finance team managers the cash flow from

Throughout my career, I have always been sought after for my experience and skill in being able to fuel an agency’s desire to change and adopt a culture that thrives on innovation and I have been successful, by authoring the strategic and operational plans, necessary to move the agency business goals forward. I have been implementing the corresponding governance oversight to ensure that the plans result in the successful adoption of new technologies. Over 20 years of experience in providing expert, high-level technical advice and counsel to the CIO, executives, stakeholders, and users on matters that affect or relate to current and existing IT, planning, functions and programs. Serve as a technical strategy advisor on projects requiring high-level strategy alignment, technical vision, management evaluation and oversight. Create optimal strategies for applying and optimizing technology; establish new technology objectives in line with agency objectives; and articulate business advantages of technological development

After I performed an internet search for “low-cost provider” 3 companies that are pursuing a low-cost strategy in their respective industries that stood out to me were Walmart, McDonald’s, and IKEA. These firms have achieved competitive advantage. Walmart has achieved competitive advantage by using the low cost provider strategy and providing consumer products at lower prices. Walmart’s slogan “Save Money, Live Better” shows the company’s strategy. In order for Walmart to produce reasonable price products, the company buys from cheap domestic suppliers and low-wage foreign markets which allow Walmart to sell products at low prices.

Our company will work hard to achieve the lowest production cost and distribution costs. We will introduce our product in the market at low price, but not to sacrifice profit. Low costs price lower than its competitors will win large market share and eventually competitive with the leading brands.

A complete monopoly sensors manufacturer has been split into four competing companies by the government in 2014: Andrews, Baldwin, Chester and Digby, respectively. This report is a description of the reform and operating process of Baldwin.

Technological innovation and the Internet of Things (IoT) are forcing companies to adopt perpetual change. No industry, segment, or market is immune. Consumers are forcing both brands and the packaging industry to evolve to focus on bringing products to the market that reduce costs and increase revenues…while driving brand awareness, sustainability, consistency, and competitiveness. Further, the packaging market is moving from conventional packaging to interactive, aware, and intelligent. We at Moor Insights & Strategy (MI&S) have recognized how the Internet of Things, Big Data, Cloud, and consumer-based technologies are changing how these companies drive more value and new revenue opportunities. The industry calls this evolution, Smart Packaging. Firms like; Amcor, BASF, Bemis, Landec, and Nypro are establishing early success and leadership in the market. Software vendors like; Amtech, EFI, IBS, Oracle’s JD Edwards, and SAP within ERP and Big Data, and Cloud.

Cost leadership implies that an organization or business tries to have low costs so that they can sell their products and services at low costs. This type of leadership strategy allows them to make profits even with low costs than their competitors. It places the business at a position where it can effectively compete on the basis of price with both the new entrants in the industry and existing competitors. It also creates a potential for profits; charging prices that are almost average to the industry while earning profits above industry standards. The following process is used to achieve cost leadership: advertising and promoting the product to achieve sales in large volumes (Buchner, Ellerman & Carraro, 2007). Invest in the latest production technology to lower production costs. Achieve high levels of productivity to reduce labor costs, one can copy designs rather than producing originals and cheaper raw materials can be used. Reducing localization and distribution costs will reduce distribution costs. Exploitation of organizational experience and knowledge will also be helpful. Finally, secure government assistance will be important.

All rights reserved. Focus on market niche Best-cost provider 1–11 STRATEGIC APPROACHES ♦ Building a competitive advantage by: 1. Striving to become the industry’s low-cost provider (efficiency).