Scribd
Upload
31 views

Topic Area For Discussion Is It Possible PDF

It is possible for a company to follow both a cost leadership strategy and differentiation strategy simultaneously, but it is difficult to execute and not optimal for all businesses. Some companies like Toyota have successfully combined low costs with product differentiation. However, pursuing both strategies complicates operations and it can be challenging for companies to offer high quality, differentiated products at low prices. Franchise businesses in particular often struggle with this dual approach, as franchise owners must pay increasing costs for products while making less profit each year.

Uploaded by

eun hee kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
31 views

Topic Area For Discussion Is It Possible PDF

It is possible for a company to follow both a cost leadership strategy and differentiation strategy simultaneously, but it is difficult to execute and not optimal for all businesses. Some companies like Toyota have successfully combined low costs with product differentiation. However, pursuing both strategies complicates operations and it can be challenging for companies to offer high quality, differentiated products at low prices. Franchise businesses in particular often struggle with this dual approach, as franchise owners must pay increasing costs for products while making less profit each year.

Uploaded by

eun hee kim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Topic/Area for Discussion :

Is it possible for a company or business unit to follow a Cost Leadership Strategy and a Differentiation Strategy
simultaneously ? Why or Why not ?

Answer:

It is possible for a company to continue a cost leadership strategy and a differentiation strategy
simultaneously but it does not work for everyone. Some businesses rather follow the low cost way by
striving for efficiencies and economies of scale rather than focusing on differentiating themselves from
the competitors in a way other than price. Some companies like Toyota have actually joined both. A
company lacking one of the competitive strategies is easily left with no competitive advantage.
Businesses that join overall low cost and high quality differentiation strategy offer high quality and low
prices which eventually complicates things following cost leadership. Franchising is in a dilemma
because their decline in revenue. Many are out looking for answers from the franchisers about unknown
marketing expenses and ghost money. Franchise owners like Coldstone ones are paying too much
money for product and making less every year. Economic pressure plays a great part in this outcome
especially when franchisers do not adapt to less expensive products due to the peoples limiting of
discretionary spending. A problem is that due to lengthy agreements franchisees are required to sign,
many rules must be followed which usually require arbitration for a dispute to be fixed, therefore
restricting individual lawsuits. After a lawsuit to Edible Arrangements, management took the smart
route into investing more in e-commerce and social media which are the best ways into getting higher
probability due to keeping up with consumer taste.

You might also like