quality management systems or flexible manufacturing systems (Akan et al., 2006). Other such activities include controlling the amount of waste, modernising marketing efforts by reducing traditional marketing and increasing social media use and using efficient time strategies (Business Trends and Insights, 2019). A good example of an organisation that has implemented this strategy is IKEA. The company’s engineers design products at a low cost which can be assembled by the customers. This reduces the dependence of the company on third-party manufactures and further, lowers costs (Hitt, Ireland and Hoskisson 2016). In the case of Namoi Cotton, the firm basically focuses on maximising its market share and improving its financial performance which automatically sets premium prices for its services. Therefore, the company focuses on the differentiation strategy rather than focused cost leadership strategy. (2). Focused Differentiation strategy The focused differentiation strategy emphasizes on selling a unique service or product to a smaller segment of the market than in the differentiation strategy (Allen and Helms, 2006). The firms can differentiate their products by adding unusual features, perceived status and prestige, engineering design and innovating the products at a faster pace than the rival firms.
10 Usually, the firms that implement this strategy have a high cost attached with their product or service as differentiation needs high investment, innovation and creativeness (Wook Yoo, Lemak and Choi, 2006). An example for this can be the new generation food trucks that operate in the US. These trucks serve high quality organic food cooked by chefs from well- known restaurants (Hitt, Ireland and Hoskisson 2016). In the case of Namoi Cotton, the company competes in four markets – cotton seed marketing, ginning of cotton market, marketing of cotton and cotton seed packaging market. This clearly does not relate to the focus differentiation strategy as under it, the company focuses on a smaller segment of the market. Thus, Namoi Cotton uses the differentiation strategy rather than the focused differentiation strategy. (3). Integrated Cost Leadership / Differentiation strategy This strategy is a combination of both cost leadership and differentiation strategy. This type of a strategy is adopted because of customer expectations. Customers usually anticipate a differentiated product with a low price, so many firms engross in primary activities that help them pursue differentiation and low cost simultaneously. Organisations that use this type of strategy focus on efficiently producing products/services that have differentiated features. Low costs can only be maintained by efficient means of production and on the other hand, differentiation can be achieved by the creation of unique value. Under this strategy, firms usually adapt to changing technological changes in order to keep innovating their products/services. Therefore, integrated cost leadership/differentiation strategy helps firms to have a competitive advantage in the industry with cost minimization and differentiation of products/services. Namoi Cotton uses the differentiation strategy where
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