Analysis Of Wal Mart's And The Ikea's Generic Competitive Strategies

1046 Words Aug 4th, 2016 5 Pages
Introduction: Chapter five focuses on competitive strategies, which include “Miles and Snow’s adaptive strategies,” “Porter’s” and “Mintberg’s generic competitive strategies.” (Coulter, 2013, pp. 130-138) Porter’s strategy focuses on the external and internal analysis of organizations to evaluate if they possess low costs or noticeable differences from their competition. At first it was difficult for me to think about what organizations have low costs, which set them apart from their competitors due to the text stating that low cost are different from low process. During my research about cost of leadership and strategy marketing, I found that there are four organizations that specialize in low cost strategies, Wal-Mart, McDonald’s. Ikea, and Southwest Airlines. What sets this organization a part from their competitors is their ability to employ cost leadership strategy. With organizations like Wal-Mart, McDonald’s and Ikea, I can understand why it would be difficult for their competition to adapt to their low cost strategy. I say this because even though it is smart business to keep costs low, most organizations are not willing to model their organization’s business ethical in line with Wal-Mart or McDonald’s. Even though having low cost may be a smart strategy to beat the competition, sometimes it has higher ethical operation costs.
Cost Leadership Strategy: The cost leadership strategy is about being able to keep organizational costs low while having the ability to…
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