CURRENT EVENT ANALYSIS-phase 1 - 96629

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  • From: Business, Business
  • Posted on: Tue 07 Jun, 2016
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  1. Discuss how differentiation strategies and cost leadership strategies affect international marketing decisions. Provide examples of firms that use both strategies.

 

 

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Overall cost leadership requires firms to develop policies aimed at becoming and remaining the lowest-cost producer and/or distributor in the industry. Company strategies aimed at controlling costs include construction of efficient-scale facilities, tight control of costs and overhead, avoidance of marginal customer accounts, minimization of operating expenses, reduction of input costs, tight control of labor costs, and lower distribution costs. The low-cost leader gains competitive advantage by getting its costs of production or distribution lower than those of the other firms in its market. The strategy is especially important for firms selling unbranded commodities such as beef or steel.