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Aéropostales main business strategy is a combination of product differentiation and cost leadership. The brand is well known here in the United States. They have stores in malls across America. However with this approach of having their own stores they look like they are going after making the brand well known so they can charge more. This is not the case. They charge cheaper prices than most if not all the retail stores in the mall.
In 2012 Aéropostale had 1092 stores under their control. (Aeropostale, 2014) This gives them a sizeable market in the United States to sell. The mission statement of the company is for them to be the destination of the young adult market. For people to want to go there it means they are looking for a product differentiation strategy. They want people to know there brand very well. They are trying to become a popular brand that is worn by a lot of people. This means they need to stick out.
Although they are trying to do a product differentiation strategy they are also trying to be a cost leader at the same time. There prices tend to be cheaper than many other competitors such as Abercrombie, American Eagle, and Hollister. Compared to these brands they do not stick out as much. They are able to get brand awareness at a cost. Their prices bring customers in who are budget minded. Their style is also very similar to all of the other brands. This does not allow them to achieve the desired product differentiation strategy well and why they have implemented a lower cost to their products also.
Very recently they have changed their goals though. They are keeping the main values which are integrity, respect, honor, and teamwork. (Lomax, 2013) They are trying to use the pillars as a way to succeed in a ver...
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... April 11). Bloomberg Businessweek. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=BKE
Durisin, M. (2013, March 13). Business Insider. Retrieved April 10, 2014, from Business Insider: http://www.businessinsider.com/aeropostale-launching-new-tech-for-teens-2013-3
Fitch, A. &. (2014, April 11). Bloomberg Businessweek. Retrieved from Bloomberg.com: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=ANF
Lomax, A. (2013, March 14). The Motley Fool. Retrieved April 11, 2014, from http://www.fool.com/investing/general/2013/03/14/is-aeropostale-one-of-the-best-companies-in-americ.aspx
Team, T. (2014, January 23). Forbes. Retrieved April 11, 2014, from http://www.forbes.com/sites/greatspeculations/2014/01/23/new-collections-can-make-aeropostale-a-more-attractive-takeover-option/
Target has many competitors in the market, and the level of competition is highly intense. Some of its main rivals are Wal-Mart stores, Home Depot and Costco Wholesale Corp. All of them produce similar products as well as offer almost the same services to their consumers. Naturally, the organization would need a strategy that helps it to stand out and to distinguish it from its competitors, thus, Target 's positioning was based on more than just pricing; it combined quality and style. This was the differentiation strategy that have always been applied since the launch of the organization.
Kohl’s also boasts a loyal customer base and strong brand equity. These strengths are critical to offset their weaknesses. Flaws include an imbalance on sales for men’s products and a lacking online presence. (Kohl's Corporation, n.d.) Another way that Kohl’s is actively counterbalancing their negatives is by capitalizing on opportunities. Kohl’s has found that their beauty sections are an immense source of opportunity. As a result, the company is expanding those departments in an effort to capture those sales that would otherwise go elsewhere. (Wahba, 2014) Finally, Kohl’s keeps the knowledge of their threats at the forefront of their decision-making. They understand that their coupon system can be abused and cause profit losses. They also recognize that price wars in their industry can also be very damaging. As a result, they are working towards more secure methods of offering savings and strategically making efforts to remain the leader for price setting. (Wahba,
Provides a unique atmosphere - Their large open stores, packed with designer brands, gives an elegant feeling, with light colored walls that can’t be found at your local drug store. Also, with a low-pressure sales strategy they provide a very relaxed shopping experience.
Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.
I would suggest that they incorporate more diversity in their ads and campaigns to reach different ethnicities if they want to continue to expand. Also, in stores, particularly the Willow Grove, PA location, is very large and spacious. Upon entering the store it is primarily women’s apparel and accessories, as well as men’s. Maybe the company can incorporate more of its products in this location, to provide consumers with more of a product assortment.
Lululemon’s competitive strategy is broad differentiation due to the company expanding its target market and product line. Although Lululemon was initially established to satisfy the apparel needs of adult women who practice yoga, the company has widened its definition to
By understanding the market strategies that large corporations fit into and use, we are able to understand how they become so successful. Target is simply one of many examples and we are able to see that by competing with other large discount retail stores, they are still able to be the second largest in America. The strategies that they implement are what help to make them so successful and how they are able to see continued growth each year they remain in business.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
“I don’t want large people shopping in my store. I want thin and beautiful people.”
Offering special products is marked under strengths and opportunity; however, long term sustainability must ease the weaknesses and threats posed by competitors and external markets forces. However, they are several other strengths of this company that outweigh the weaknesses but can easily be threatened. Lululemon has a great brand equity and knowledge in the market which has helped them development a customer loyalty. While Lululemon’s strengths is challenging, limiting their products to a special market, with higher than normal prices opens the markets for competitors. Lululemon has several weaknesses, they only offer a specialty product and it mostly aimed to attract woman. The company’s profitability has decreased over the recent years, showing the necessity for Lululemon to sustain its economic growth through product diversification and geographical expansion. Many of their competitors have grown, mostly likely due to their global growth and divarication. If Lululemon would expand their market growth this would open up so much more opportunity for this company to grow. One of their weaknesses is there is the dependence on suppliers. This opens a great opportunity for Lululemon, right now they are heavily relying on suppliers around the world and they do not have their own manufacturing facilities. This is causing the company to spend more money of vendors to
Macy 's strategy is to provide a "localized merchandise offering and shopping experience to targeted consumers" (Macy 's Inc., n.d.). Macy 's generates primary revenue through the sale
Their mission statement leads directly to the philosophies that are taught within this organization. “No loser thoughts” is one that they use regularly when t...
The mission statement of the company was “As we grow as a company, it has become more and more important to explicitly define the core values from which we develop our culture, our bran...
Firstly, Amazon.com employed the cost leadership strategy by offering products and services at lower costs than competitors. The key to making this strategy successful were the economies of scale that allowed the company to offer the largest range of products to its customers.
Petro, G. (2012, November 5). The future of fashion retailing --- the H&M approach (part 3 of 3). Retrieved from http://www.forbes.com/sites/gregpetro/2012/11/05/the-future-of-fashion-retailing-the-hm-approach-part-3-of-3/