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Strategic Choices of Overstock

Using the frameworks discussed in the background readings, critically analyze Overstock.com's strategic choices at the corporate level (remember that "corporate" level is the very highest level of the organization, with lower levels being the "functional" and the "business" levels).

WEEK 1:
What are Overstock's corporate-level strategies? What generic Porter strategy does the company follow? Are Overstock's strategic choices in sync with the Porter generic strategy you believe the company follows?

WEEK 2:
Using the Grand Strategy Selection Matrix (please look up this model - it is easily found in Google), which one of the four quadrants does Overstock best fit within? Discuss!

Solution Preview

Wk 1
Overstock's corporate level strategy is cost leadership. The company sold at below wholesale prices and has established itself as a leader in selling low priced inventories. Porter's strategy followed by Overstock is cost leadership. The foundation of Overstock is that it initially sold surplus and returned merchandize on an online e-commerce website. It has developed cost leadership by liquidating the inventories of at least 18 failed dot.com companies at below wholesale prices. The current strategic choices that Overstock has is purchasing or manufacturing specifically for the company. These are products ...

Solution Summary

The answer to this problem explains strategic choices of overstock. The references related to the answer are also included.

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