Management and Organizational Studies 4410A/B Lecture Notes - Lecture 5: Duracell, The Keg, Canadian Tire

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 4410A/B
• Professor: Michael Sartor

Document Summary

Competitive advantage above average profits than competitor. Cost leadership ryanair ikea no executives travel first class, products are no frills: differentiation segment markets in order to target goods. You incur costs differentiating and creating a competitive advantage: focus or niche strategy used by small firms, but specialist niches could disappear in the long run. Don"t need a lot of custmers danger of being stuck in the middle" or you wont have a competitive advantage. Strategies - some writers have criticized the model for focusing too narrowly on economic analysis and not enough on the social, political, and cognitive aspects. Also strategic choices are largely restricted to a very short list of options, discouraging the creation of truly unique strategies. Overall cost leadership: aggressive construction of efficient scale facilities, vigorous pursuit of cost reductions from experience, tight cost and overhead control, avoidance of marginal customer accounts, cost minimization in all activities in the firms value chain.