ipl-logo

Michael Porter's Five Generic Strategies Under Cost Leadership Strategy

1051 Words5 Pages

ADROLL STRATEGIES
As per the case, the current business level strategy that AdRoll uses is the overall low cost leadership strategy. It is regarded as Type 1 of Michael Porter’s five Generic Strategies under cost leadership strategy, implying there is a distinction between cost leadership; this is whereby a firm offers products or services to a wide range of customers at the lowest price available on the market (David & David, 2015). The cost leadership strategies ideally aim to under-price competitors and gain market share and sales, it targets price-sensitive customers. The AdRoll case provides sound evidence towards this type of strategy they have adopted, it has been indicated that AdRoll not only targets the wealthy customers but also …show more content…

The case has shown that the firm so far is doing very well and the only thing that its management is concerned about is uncontrolled growth which could potentially lead to a disaster. AdRoll has a number of success stories, e.g. it is one of the fastest growing firms in San Francisco, has a high return on investment, high customer retention rate and also gained economies of scale which overall gives it a competitive advantage. All these may have been achieved through the currently working strategy but we cannot entirely conclude and prove that each and every point of this firm’s success may be attributable to the strategy in use and also concerning the firm’s future; will this strategy still be the best option? It would be more appropriate for a new starting up company that is still in need to penetrate into the market to fully adopt the low cost leadership strategy (Schendel, 2004), it was pointed out that many late entrants are able to bring prices down significantly while making some marginal improvements to quality and adding some innovative …show more content…

They are designed to improve the performance of the business. The functional strategies identified in the AdRoll case are marketing functional strategy and human resource functional strategy.
MARKETING FUNCTIONAL STRATEGY
It is concerned with the product/service, price, place/distribution and promotion/advertising. It is an important element of the functional structure as it deals mostly with customer retention. Marketing functional strategy comprises of 3 marketing intensive strategies which are market development, product development and market penetration.
i. MARKET DEVELOPMENT STRATEGY-Involves expanding the portfolio of markets that the organization serves (Ehlers & Lazenby, 2010). The business introduces its products to new geographical areas that are towns, regions and countries. As shown in the case AdRoll opened its new offices in New

Show More
Related

  • Trader Joe's Case

    1669 Words  | 7 Pages

    Coulombe didn’t have a long term strategy in mind. According to the case study only after the arrival of John Shields TJ pursued the idea of expanding the markets and not playing the niche supermarket offering their tailored service in California. The previous sections already demonstrated how the internal resource, in this case the loyal customers insisted on the growth strategy and helped the management to open their eyes for better and more consistent strategies. The major stakeholders customers admired every opening of the New shop of TJ either creating fan pages and or by cueing for every newly opening

    Read More

  • Case Study Dynacorp

    1336 Words  | 6 Pages

    Introduction A company’s success is measured by how well it is structured and organized in order to adapt to the changes in environment as well as the changes within itself such as the company’s scale, employees, product scope, etc. Having a suitable, well-structured organizational frame will not only increase the chance of being success but also prolong the company’s lifespan compared to an un-structured one. It is important to note that an organization’s structure needs to fit in with the current situation and does not necessarily required remain unchanged over time. Taking Dynacorp as an example, even though its functional structure contributed to the vast growth of the company at the start, its limitation in dealing with the changes within

    Read More

  • Premier Inn Swot Analysis

    1718 Words  | 7 Pages

    • To check the physical resources and scope of technical alliances with arrival of VC. • To detect more financial, technical, and industrial expertise prior to applying VC. • To develop and implement accelerated market presence. To define the strategic capabilities of Premier Inn, it is worth to mention its dependence on the macro-environment.

    Read More

  • Home Depot Leadership Analysis

    1153 Words  | 5 Pages

    Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank. Along with investment banker Ken Langone and merchandising guru Pat Farrah. These three visionary had their sight on a one-stop shopping for the do-it yourselfer. They opened there first two Home Depot on June 22, 1979 in Atlanta Georgia. Home Depot is known as the largest home improvement specialty retailer and the 9th largest retailer in the world.

    Read More

  • Swot Analysis Of Apple Marketing Strategy

    3863 Words  | 16 Pages

    1.0. INTRODUCTION Every organization strives to benefit from creating value for its customers, in the most effective way, for the purpose of attaining competitive advantage in the business environment in which they operate. Philip Kotler(2015) defines marketing as “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit”. According to Hollensen (2003), a strategy is a fundamental pattern of present and planned objectives…”

    Read More

  • Hilton Garden Inn Marketing Strategy

    1248 Words  | 5 Pages

    KETING STRATEGY A marketing strategy is a process or model to allow a company or organization to focus limited resources on the best opportunities to increase sales and thereby achieve a sustainable competitive advantage. Or it is a process or model to allow a company to focus limited resources on the best opportunities to increase sales and there by achieve sustainable competitive advantages. The marketing strategies of Hilton Garden Inn are as follows. Philip Kotler defines marketing as a social process used by the people, individually or in a group to achieve what they want by the creation or exchanging their product details and their values with others.

    Read More

  • Costco's Competitive Strategies

    729 Words  | 3 Pages

    Specifically, Ralph’s (similar stores are Vons and Albertson’s) and Whole Foods (similar stores are Gelson’s and Trader Joes) are two firms that utilize cost leadership and differentiation. On one hand, we have Ralph’s using cost differentiation by providing a broad range of merchandise at a decent price. On the other hand, we have Whole Foods that has implemented a differentiation strategy by marketing their merchandise as healthier (organic). The trade of for both companies is that they are attracting less consumers by just marketing to a specific crowed. For instance, if Whole Foods had lowered their price and still sold premium merchandise, soon Ralph’s would be in trouble.

    Read More

  • Operations Management Case Study: American Connector Company

    2441 Words  | 10 Pages

    Market Positioning: Focus on differentiation via customization and generate higher margins vs. cost cutting to compete in the low cost category. 6. R&D upgrade: ACC needs to invest much more in technology to reduce losses as it has been 5 years since the last improvements were made. QUESTION 2 Q2: How big are the cost differences between DJC’s plant and ACC’s Sunnyvale plant?

    Read More

  • Success And Failure Of Nike

    1424 Words  | 6 Pages

    In the Present situation IN the present situation the strategy of expansions is very important as world economy tends to globalize and nowadays, multinational companies like Nike which can hardly locate production in one country only but

    Read More

  • Advantages And Disadvantages Of Henry Mintzberg's Prescriptive Schools Of Strategy

    1331 Words  | 6 Pages

    Firstly, the Boston Consulting Group (BCG) matrix that concentrate the market position of different products. Secondly, the experience curve and the Profit Impact of Market Strategies model which identified a number of strategic variables. Furthermore, competitive advantages model (Porter, 1985) which focus on five different forces in environment of organization, but suit with only stable market. Generic strategy was developed strategies under this school, especially it can identify position in the market. Advantages: -Provide content in a systematic way to the existing way of looking at strategy -Particularly useful in early stage of strategy development, when date is analyzed -This school emphasis on analysis and calculation can be a very strong support to the strategy development process -This strategy suit with big businesses or organization which have ability for operate effective market research in the environment

    Read More

  • Moccona Coffee Case Study

    1044 Words  | 5 Pages

    Introduction Every business organization is using a marketing concept which is used as a tool to identify customer’s needs. And further try to meet them by making right decisions in line with customer’s needs. In line with meeting customer’s needs the ultimate goal of every business is to gain profit. That’s why they make use of different marketing strategies to meet not only the need of the customer but as well as the goal of the company. We know for a fact that marketing strategies comprises everything from developing a product, to introducing it to the market, to selling and improving it as the need of the target market changes.

    Read More

  • Marketing: Marketing Mix In The Ice Cream Industry

    1497 Words  | 6 Pages

    6.1 Marketing Mix Marketing mix is a set of controllable marketing tactics used by business to promote their product and achieve its marketing objectives. (L. Lake, 15 June 2017) Marketing mix is also called the 4Ps which consist of Promotion, Place, Product and Price. (M. J. Baker, 2001, p.54) 6.1.1 Product

    Read More

  • Nike Consumer Behaviour

    1301 Words  | 6 Pages

    Consumer behavior towards Nike products Marketing is collaborating the value of a product, service or brand to customers, as a driving force to promote or sell that product, service or brand. Marketing procedures and skills embrace selecting target markets by carrying out a market analysis and market segmentation, as well as taking into account the consumer behavior and advertising a products value to customers. Marketing is the utmost vital aspect of developing and enlarging your business, and is a speculation that will recompense for itself over and over again. The term “marketing mix,” was first devised by Neil Borden, the president of the AMA (American Marketing Association) in 1953.

    Read More

  • Reflection On Strategic Marketing

    917 Words  | 4 Pages

    Strategic marketing is a broad and practical subject which included the concept of marketing subjects of previous semesters such as business marketing. The study of this subject has contributed to marketing knowledge in many ways, as well as it has strengthened my skills in application of marketing concepts. My knowledge was increased that I was able to develop a complete strategic marketing plan of not only on the part of marketing analysis or strategy of a product or service, but also the whole corporate plan. My skills and capabilities that were developed and integrated during lectures and tutorials include the analytical skills, coordination skills, presentation skills, organization skills, etc.

    Read More

  • Literature Review On Startup

    984 Words  | 4 Pages

    At first these companies has incur lot of expenses in the form of business modelling, testing and marketing their concept. Since, these companies are very small and initially operated and financed either by an individual or by partners together thereby the companies face many challenges with limited resources availing with ample opportunities. Now, if we see

    Read More

More about Michael Porter's Five Generic Strategies Under Cost Leadership Strategy

Open Document