BUS 1000 Lecture Notes - Lecture 9: Whole Foods Market, Starbucks, Niche Market

• School: University of Denver
• Department: Business Core
• Course: BUS 1000
• Professor: Haag Stephen

Document Summary

Pandora, itunes radio: defensive: take the structure of the industry as given, and position the company to match its strengths and weaknesses to it (best buy) 3 generic strategies: cost leadership strategy: a firm which finds and exploits all sources of cost advantage and aims at becoming a low cost producer in the industry is said to pursue a cost leadership strategy. Means having the lowest per unit cost in the industry. Ability to position their products/ services to appeal to the customer in that particular industry. Ability to reduce price to compete with substitutes. High barrier to entry due to lost cost and prices. Competitors may lower their cost structure impacting profits. If perception of quality becomes too low cost leaders will suffer. The need to keep cost low might lead cost leaders to be late in detecting key environmental trends. Cost leaders focus on efficiency making it hard to respond quickly to changes.