Read Chapter 6 in the textbook. The table that follows includes a list of promin
ID: 396345 • Letter: R
Question
Read Chapter 6 in the textbook. The table that follows includes a list of prominent firms. Select one of the five categories of generic business-level strategies—(1) broad cost leadership, (2) focused cost leadership, (3) broad differentiation, (4) focused differentiation, and (5) value innovation—that you would apply to each firm. Add that strategy to the table, and explain your choices.
Companies
Business-level strategy
Your notes
Ann Taylor
BIC
Big Lots
Black & Decker
Clif Bar
Coca-Cola
Dollar stores
Ferrari
IKEA
Greyhound Lines
Hyundai
Kia Motors
Netflix
LVMH
Companies
Business-level strategy
Your notes
Ann Taylor
BIC
Big Lots
Black & Decker
Clif Bar
Coca-Cola
Dollar stores
Ferrari
IKEA
Greyhound Lines
Hyundai
Kia Motors
Netflix
LVMH
Explanation / Answer
Answer:
No company follows any specific strategy, specially the big companies like these make strategies according to their specific product. Still we can classify their strategies considering a broad perspective.
Companies
Business-level strategy
Your notes
Ann Taylor
Broad Differentiation
The company provides high quality casual clothing at higher prices, whereas its sub brand ‘Loft chains’ is implementing Focused Cost Leadership strategy.
BIC
Focused Cost Leadership
The company focusses in making only three products i.e Pens, lighters and razors. They sell in high product volumes with high quality
Big Lots
Broad Cost Leadership
The company has a very diversified product portfolio which focuses on providing cheap products
Black & Decker
Focused Differentiation
The company make products for a very specific need and provide it unique features
Clif Bar
Focused Differentiation
Company aims at making healthy food related products most organic and natural food
Coca-Cola
Focused Differentiation
The company has developed the reputation of quality in the non-alcoholic beverage segment
Dollar stores
Broad Cost Leadership
It sells the many types of products at some very low prizes
Ferrari
Focused Differentiation
Ferrari focuses in making high quality unique cars.
Value Innovation
Google constantly works on providing new and unique solutions for the existing problems
IKEA
Focused Cost Leadership
Provides very competitive pricing in Home Furniture
Greyhound Lines
Focused Differentiation
The company’s strategy is to expand its root in North America by providing long distance bus travels
Hyundai
Focused Cost Leadership
Company aims at providing a quality car to upper and middle-income segments
Kia Motors
Focused Cost Leadership
Kia motors has always focussed in providing cars to middle class segments
Netflix
Focused Differentiation
Netflix focuses on providing quality content. Mostly focusses on developing TV serials and movies for global audiences
LVMH
Focused Differentiation
Luxurious and unique products
Companies
Business-level strategy
Your notes
Ann Taylor
Broad Differentiation
The company provides high quality casual clothing at higher prices, whereas its sub brand ‘Loft chains’ is implementing Focused Cost Leadership strategy.
BIC
Focused Cost Leadership
The company focusses in making only three products i.e Pens, lighters and razors. They sell in high product volumes with high quality
Big Lots
Broad Cost Leadership
The company has a very diversified product portfolio which focuses on providing cheap products
Black & Decker
Focused Differentiation
The company make products for a very specific need and provide it unique features
Clif Bar
Focused Differentiation
Company aims at making healthy food related products most organic and natural food
Coca-Cola
Focused Differentiation
The company has developed the reputation of quality in the non-alcoholic beverage segment
Dollar stores
Broad Cost Leadership
It sells the many types of products at some very low prizes
Ferrari
Focused Differentiation
Ferrari focuses in making high quality unique cars.
Value Innovation
Google constantly works on providing new and unique solutions for the existing problems
IKEA
Focused Cost Leadership
Provides very competitive pricing in Home Furniture
Greyhound Lines
Focused Differentiation
The company’s strategy is to expand its root in North America by providing long distance bus travels
Hyundai
Focused Cost Leadership
Company aims at providing a quality car to upper and middle-income segments
Kia Motors
Focused Cost Leadership
Kia motors has always focussed in providing cars to middle class segments
Netflix
Focused Differentiation
Netflix focuses on providing quality content. Mostly focusses on developing TV serials and movies for global audiences
LVMH
Focused Differentiation
Luxurious and unique products
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