Explore BrainMass

Compare a low-cost strategy vs differentiation strategy

Identify two companies - one you believe pursues a low-cost strategy and another that pursues a differentiation strategy. Relying on personal knowledge, company annual reports, or articles in newspapers, Internet and/or business periodicals, discuss your chosen companies' competitive strategies.

Solution Preview

Low Cost & Differentiation Strategy

Low Cost Strategy of Wal-Mart

The company that pursues low cost strategy as its winning strategy is Wal-Mart. This strategy of the Wal-Mart is focused on the potentiality of the company to bring forth and convey products of competitive excellence at lower costs. Wal-Mart is a company that endlessly endeavours to abbreviate costs and due to its strategy of low-cost leadership in the market place it has attained an image of supplier of products at the lowest prices (Customer focused low cost leadership strategy, 2009). Due to its low cost strategy Wal-Mart had become able in achieving the markets and carrying off the competitors along with an improvement in revenue and market share.

Wal-Mart's economies of scale and competence form the central part around which Wal-Mart carries out its strategy. This competitive strategy chosen by Wal-Mart assists it in comparing its each and every activity along their value chain with its competitors (Wal-Mart ...

Solution Summary

The solution compares a low-cost strategy versus differentiation strategies.