case study ass.docx - Question 1 From now on Shatin Dairy Farm has been used glass bottles which causes higher costs If Shatin Dairy Farm switches the

case study ass.docx - Question 1 From now on Shatin Dairy...

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Question 1 From now on, Shatin Dairy Farm has been used glass bottles, which causes higher costs. If Shatin Dairy Farm switches the materials to plastic and paper containers, the costs would be reduced, which would result cheaper price for customers. The cost leadership strategy with cheaper price might be able to attract more customers and as Laura believes, this would result broaden product line. On the other hand, I believe that Shatin Dairy Farm is now using a broad differentiation strategy and this might attract many customers. Although using glass bottles costs more, many customers might be attracted by this differentiation from its competitors. Therefore, by changing the materials of the container, there is a risk of losing original customers. In my opinion, even if there are some possibilities to attract new customers with the cost leadership strategy, it is better to use a broad differentiation strategy. I also believe that retaining old customers is
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  • Spring '14
  • Shatin Dairy Farm

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