Unit 11.11

Question 1

Cost Leadership Strategy (Wal-Mart)

Answer 1

• Highly efficient
• Overhead and product costs kept to a minimum
• Business processes simple and highly automated
• Product design simplified or standardized
• Use outsourcing
• Continuing operational improvements

Question 2

Differentiation Strategy (Whole Foods)

Answer 2

• Higher quality
• Innovative design
• Technological capability
• High cost inputs
• Customer experience

Question 3

Focus Strategy (Harley Davidson)

Answer 3

• Niche markets
• Develop customer insights that address unique needs
• Strong brand loyalty
• Must choose Cost Leadership or Differentiation as well

Question 4

Because of the inherent smallness of a niche market…

Answer 4

easier to pursue Differentiation over Cost Leadership