Competitive Strategies
Essay by omoomo • May 27, 2017 • Essay • 649 Words (3 Pages) • 1,145 Views
Mission Statement:
Our goal is to create good products that everyone can afford. Encouraging more consumers from different regions to purchase our firm product. Moreover, we promised that we will be responsible and always giving what we get back to the society.
Vision Statement:
To keep enhancing our products and exceed the customer’s expectation. Moreover, can capture substantial market share in all markets and see everyone have an opportunity to own a camera or drone in this technology driven world.
By comparing to other competitive strategies, the low-cost strategy can produce a durable competitive edge when competitors find it hard to match the low-cost leaders’ approach to driving costs out of the business (Casali, Gamble & QUT Business School, 2017). we are offering a low-price product to stimulate demand, gain market share and satisfied the customer’s need and wants. We aim to reduce our production cost to as low as possible without sacrificing much products’ quality to ensure that we can earn reasonably profit and still captured consumer’s demand. Thus, our company will be gaining the cost advantages by producing a large quantity of products and take the advantage of economies of scale.
The reason why our firm is using the low-cost competitive strategy is because our firm is mainly targeting on the lower middle income customers, who have a demand for a camera or drone but don’t want to spend too much money on unnecessary features that they will never use. For the camera and drone, these two products may not be able to lead huge demand to people in the market because there are also many other competitors’ products which take certain of market share in different countries. Low-cost strategy is to squeeze its competitor’s profits and margins, then it can invest more in research and development to improve the performance of the products (Goll, Brown Johnson & Rasheed, 2008). Therefore, our firm can establish a competitive edge as a primary advantage of low-cost strategy in the business.
As mentioned our firm is using the low-cost strategy. By using this strategy, it is in line with our firm’s mission statement that is “Everyone can afford it”. On the other hand, based on our company’s vision, utilizing low-cost strategy can improves products’ impression to customers. For example, reducing some features from the model but
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