Broad Cost Leader Case Study

TEAM CHESTER

I. Our strategy

Hybrid Approach - Broad Cost Leader and Broad Differentiation
The Chester team will implement a Broad Cost Leader and Broad Differentiation strategy, maintaining a presence in every segment of the market place. We hope to gain a competitive advantage by getting R&D costs, production costs, and raw material costs as low as possible. Our Cost Leader position will help us with a competitive advantage based on price, we will price our products fairly average. Not too low but not too high either. Our products will keep up with the changes in the market, also offering improved size and performance and if needed improved reliability. We will moderately increase automation levels to improve our contribution margins

When total quality management was made available in the game it became one of our other competencies in the later rounds. We have to aggressively fund awareness and accessibility until they reach 100% to try and take away sales from competitors because not of them were investing a lot into those aspects in the early rounds of the game. We invested in human resources in order to get higher productivity and a lower turnover rate. We spent $5,000 in recruiting spending and had 80 training hours. We wanted the highest caliber of workers, higher productivity and lower turnover will result in lower labor cost which is beneficial to us especially since we are trying to stay relevant in all segment we need the lower labor cost for more workers. For product redesign we decided to put two or more products around the rough fine cut of the circle along the outer dashed lines. We thought that by having a product in between two segment would generate more sales. When TQM kicked in we invested money all of TQM initiatives especially since we want to present in all segments. These core competencies will helps us gain competitive advantage because funding awareness and accessibility early gives us the upper hand on customers being aware of our