Further, there is an additional requirement of quality labour who’ll convert these raw materials into valuable goods for the consumer. All Rights Reserved. Make recommendations about how the company could modify its business-level strategy to both increase your overall level of satisfaction and to attract new customers. The primary objective of a firm aiming to attain cost leadership is to become the lowest cost producer in comparison to the competitors. the internal value-creating activities. decision processes must be integrated and include participation from all consistently pay attention to the competitive requirements of either or both According to Porter (2008), the attainment of an effective market position acts as a defensive mechanism against intense competition. For example, a firm can be able to set the price of its products at a relatively low point compared to its competitors. Today, Woolworths has identified several markets or customers to serve. Cost Leadership is the mechanism of establishing a competitive advantage by having the lowest cost of operation in the industry. Gender-balanced leadership perspectives can lead to a wide range of benefits at … Concentrate on a few key-differentiating features; tout them to create a "Suitability of an Integrated Cost and Differentiation Competitive Strategy." We are currently ranked as the 15th best startup website in the world and are paving our way to the top. Incorporate upscale features and attributes at low cost. Click here to request for this assignment help. Leadership Expert, Author and Keynote Speaker; Founder of Women in Leadership and Learning (WILL), Sign up for membership to become a founding member and help shape HuffPost's next chapter. A focused cost leadership strategy requires The company intends to double the number of home-branded products (currently, there are roughly 1500 – 2000 home-branded products in Woolworths). "Suitability of an Integrated Cost and Differentiation Competitive Strategy." Choose of one puts constraints on using the second Published on March 9, 2015 March 9, 2015 • 38 Likes • 6 Comments in whatever features buyers are willing to pay for. What are you waiting for? In this regard, adding images, Social media tags and mentions are likely to boost the visibility of your posts to the targeted audience and enable you to get a higher discount code. Failure to execute the various support and primary activities optimally may culminate into the firm being ‘stuck in the middle’ (Hitt, Ireland & Hoskisson, 2009, p.120). or characteristics that customers value and provide these differentiated Today is National Voter Registration Day! This is IvyPanda's free database of academic paper samples. On the other hand, to survive in the long run, it is important for firms to ensure that they implement a sustainable competitive advantage. "Suitability of an Integrated Cost and Differentiation Competitive Strategy." In addition, Woolworths drives its differentiation business-level strategy with excellent and well-funded marketing campaigns. This arises from the fact that the firm has to implement both differentiation and low cost strategy. Responsibility for effective TQM rests with top-level managers Integrated strategy can also contribute towards a firm’s competitiveness by ensuring that it is effective in its pricing strategy. An integrated cost and differentiation strategy also provides a firm with an opportunity to enhance its human capital. training necessary and management listens to their ideas). This is made possible by the firms’ ability to implement a low pricing strategy. This is usually achieved by large scale production which enables the firm to attain economies of scale or by innovating the production process. strategies simultaneously. The company has been a leader in providing cheap fresh foods for its customers. Differentiation and cost leadership. You can use them for inspiration, an insight into a particular topic, a handy source of reference, or even just as a template of a certain type of paper. Manning, A., 2001. In order to achieve flexibility, firms are required to adjust their systems, methods and procedures. Mason, OH: Thompson. In the event of focus lacking, there is a high probability of competing firms taking advantage (2008, p.3). – Principles, Types & Scope, What Is Product Line? basic product with few frills (acceptable quality and limited selection). Provide specific examples to support your response. other product categories to widen market appeal. Tell us what you think of our article on cost leadership in the comments section. differentiating features. The competitive strategy entails both offensive and defensive mechanisms which are aimed at dealing with the five competitive forces (Vallabhaneni, 2009, p. 15). _uacct = "UA-77254-4"; narrow market niche where buyer needs and preferences are distinctively Figure: Integrative Cost Leadership/ We recommend that you use your own judgement and consult with your own consultant, lawyer, accountant, or other licensed professional for relevant business decisions. We spend a lot of time researching and writing our articles and strive to provide accurate, up-to-date content. It shows that Woolworths cannot survive with a single business-level strategy in the highly competitive Australian retail sector. The expenses incurred by a business in the process of bringing a product or service into the market is known as the cost; while the money which the customers pay for that product or service is known as its price. Integrated Cost Leadership/Differentiation. While all retailers aim to differentiate themselves, Woolworth has a differentiation strategy integrated in its broad approach. This strategy is especially beneficial in a market where the price is an important factor. Despite the fact that the adoption of multiple competitive strategies enhances a firm’s ability to attain above-average returns, there are a number of costs associated. Either they have to commit to cost reduction or they lose the race. Try to On competition. A company could be the lowest cost producer yet not offer the lowest-priced products or services, thus possessing higher profitability. In its integrated cost leadership/differentiation strategy, Woolworths focuses on low cost to deter competitors such as Coles and Aldi from acquiring its market shares (Hanson, Hitt, Ireland, & Hoskisson, 2014). If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. price rival brands with comparable features. For instance, the company has identified specific markets to serve under various categories such as supermarket, liquor, consumer electronics, home improvement and general merchandise among others. Alternatively, a firm can also easily take advantage of technological advancement in the industry. A flexible manufacturing system is a an integrated cost leadership/ differentiation strategy are less differentiated How Is It Used In Brand Wars? For example, a firm that has incorporated an integrated strategy is able to respond to the changes in the business environment more effectively. Employees care about their work and will take the initiative to performed value-creating activities to increase flexibility and responsiveness. If you continue, we will assume that you agree to our Mason, OH: South-Western. customised to their requirements and tastes. integrated cost leadership/differentiation strategy. Remain The "article sharing for free answers" option enables you to get a discount of up to 100% based on the level of engagement that your social media post attracts. Start your search now on this startup guide. IvyPanda. competitors. Specifically, Woolworths and Coles have engaged in strong price competition to ensure that they retain their customers.