Strategy - In todays fast and dynamic changing environment...

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In today’s fast and dynamic changing environment, businesses are faced daily with uncertainties and treats making it very challenging to remain successful. Similarly, in this business arena, environment was just as competitive hence it was crucial to strategize and maintain the strategy continuously. Consequently, from the year we took over the company, we decided to go for Best Cost strategy. Misner, 2010 defined best-cost strategy as “giving customers more value for the money by emphasizing both low cost and upscale difference, the goal being to keep cost and prices lower than those of other providers of comparable quality and features”. One of the main reason we decided to use this strategy is because it creates competitive advantage as it looks at the broad market and there is much differentiation between the products offered by the competition. The prices that we charged were relatively low while at the same time we attracted trend conscious consumers by investing in celebrity endorsements and using superior materials on our products. We instantly captured the best in industry position by using this strategy. However, as this is lucrative position it was soon under attack from all sides, from companies that were trying to become cost leaders and charging much lower prices compared to us. This became a treat for our company as we started losing some of our customers and market share. According to Michael E. Porter, a business that chooses to implement strategies based on either best cost or low cost or both of these strategies usually experience above average profit compared to a business that does not choose to create competitive advantage with cost or differentiation (Pearson & Robinson, 2011). Therefore, to remain competitive in the market place, we decided to expand our business by adopting some features of Low Cost strategy . By offering more models and reducing our prices lower than the competition helped us gain sustainable cost advantage over competitors and increased our market share. Operation Strategy Aiming to perform a more cost effective value chain than rivals, we upgraded our plants to increase annual cost savings. In year 11, we upgraded assembly line in AP plant to reduce 50% of reject rate which saved us more than $1787, 000 annually. Moreover, we upgraded facilities in NA plant to boost worker productivity which saved us more than $2703, 000 annually. By upgrading the equipment in
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