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Essay / Research Paper Abstract
This 3-page paper focuses on Porter's low-cost strategy for business planning and strategy. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: AS43_MTstralowc.rtf
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Unformatted sample text from the term paper:
of a company gain advantage by undercutting the competition by price (Jones and George, 2010). But there is more to a low-cost strategy then simply slapping a lower price tag
on a particular product or service. In a low-cost strategy, most of the energy of the organization is dedicated toward ensuring that costs are reduced to the lowest level they
can be (Jones and George, 2010). Porter notes that companies pursuing a low-cost strategy end up selling a product or service at a lower cost than the competition, yet still
make a profit because costs are lower (Jones and George, 2010). One good example of a company pursuing a low-cost strategy is
Wal-Mart Stores Inc. Wal-Mart has as its slogan "save money, live better," and is known as a low-price competitor when it comes to discount department stores. How does Wal-Mart maintain
its low prices? Though anti-Wal-Mart folks would like to put the blame on lower wages (which is true, in part) and nefarious employment practices, Wal-Mart saves money through its supply
chain, by integrating economies of scale. Many analysts consider that Wal-Mart does a very good job of squeezing every last efficiency out of its supply chain so costs can be
cut almost to the bone. The end result is that it can pass those lower prices along to customers. Because customers will tend to come to Wal-Mart and buy a
lot, this is where the company ends up making up much of its profit. Wal-Mart is also judicious in its selection of real
estate - it will try to move toward economies of scale by "shadow-anchoring" a retail center, rather than standing alone. Developers like this; they know that whenever a Walmart comes
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