What are three activities or capabilities a firm should poss

What are three activities or capabilities a firm should possess to support a low-cost leadership strategy? Discuss in detail. What are three activities or capabilities a firm should possess to support a differentiation-based strategy? Discuss in detail.

Solution

If a firm should possess to have a low cost leadership strategy then that company used to have some capabilities which will be used for the organizational success. This low cost strategy would be more successful in the today’s market and many companies have adopted this method. There are three important activities which should be possessed for low cost leadership strategy. Company should offer very low prices everyday which will help to compete with the competitors. To employ this system it also important to have some technical skills which will benefited to the organization. At last, all the products should be manufactured according to the customer wish so that they will satisfy. There some companies which strictly follows the low cost strategy like Wal-Mart, McDonald’s etc.

If a firm posses the differentiation based strategy. There are some activities which firm should possess to follow three activities. Capabilities which are best to perform any work in the organization like the management, development and research etc. Innovating new products and deploying some new software products used for the firm. Sales is an another important activity which is used to perform because with the marketing every person can know about the product and also the firm.