Explore BrainMass

Cost Leadership Strategy and Joint Ventures

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Please help answer the following:
1) Characteristics of a successful cost leadership strategy.
2) Common problems that cause ventures to fail.

© BrainMass Inc. brainmass.com October 17, 2018, 11:56 am ad1c9bdddf

Solution Preview

Cost Leadership (Defining Points)

Cost leadership is a business strategy with the goal of reducing its operations costs below its competitors. Three sources that lead to the cost advantage are economies of scale, low cost structure, and the learning curve.

1. Economies of Scale - This concept is the point where managers develop and implement cost reductions in operations. The goal is to improve marginal cost using this source.

2. Low-cost Structure - A cost structure is basically the expenses an organization assumes when producing a product or performing a service. The expenses to consider are fixed cost, variable cost, transaction cost, and so forth. The goal of this source is to create a structure that promotes the lowest cost for the product or service.

3. Learning Curve - This is generally when historic expenses are evaluated to create reduced present and future cost without compromising quality.

Once a company is ...

Solution Summary

This solution discusses cost leadership and joint business ventures.

Similar Posting

Analysing Joint Venture and Strategic Alliance of Alibaba

select two of the more prominent cooperative linkages that Alibaba has made. Please explain to me the meaningful differences between the two different alliances or joint ventures you have selected. It would be most helpful if you summarizing key details about Alibaba's two alliances or joint ventures so I can best understand.

For each alliance or joint venture:

1. Summarized information about the organization's two alliances (intro) and key take-aways

2. Assessed the firm's business-level or corporate-level cooperative strategy for each alliance.

3. Evaluated advantages of each alliance for competitiveness and performance.

4. Evaluated the risk from each alliance.

View Full Posting Details