Business Strategies: A Case Study

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2.1 Strategies
Strategy is how to achieve goals. Business strategy is ‘a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out these goals’. Strategy is further defined as ‘large scale action plans for interacting with the environment in order to achieve long term goals’. A strategy is a planned approach to achievement of long term goals, including the activities a firm will undertake, the resources it will require, the markets where it will do business and so on. Business strategy is said to be more adaptive to the informal authority than the formal authority (Ramli and Iskandar, 2014). Ramli and Iskander (2014) further emphasized that business strategy is the most important
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Cost leadership is a situation when product is offered to the market at a cheaper price as compared to similar or same product in a competitive market. This is attributed to economies of scale, control of suppliers and channel (Li, 2016). Cost leadership is the ‘ability to produce or distribute goods more cheaply than its competitors’. In addition, cost leadership is a strategy outline by Porter that emphasizes organizational efficiency to ensure that the overall costs of producing products and services are lower than that of competitors in the industry (Caroll and Gillen, 1987; Porter, 1996). Measures of cost leadership include offering broad range of products or services, operating efficiency, providing competitive prices for product and services, forecast of market sales growth, control of operating and overhead cost, innovation in production process, innovation in service offering (Acquaah,…show more content…
Niche specialization stands for an extreme form of differentiation. Here, the products have unique features and premium prices are charged. Porter explained that a strategy depends on defining a company’s position that the company can use to achieve and sustain competitive advantage. It is argued that firms should not adopt strict competitive strategies to ensure efficiency, though the issue of strategy should be taken seriously. This is to enhance efficiency and effectiveness in an organization. It concluded that many firms have adopted new technologies and innovation in their quest to improving

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