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9/22/18, 2(53 PMCollection – MSA 603 Strategic Planning for the Admin ...

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Thread: Week 4 Post: RE: Week 4 Author:

Posted Date: September 19, 2018 12:09 PM Status: Published Overall Rating:

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Kyle Schafer

Brian,

McDonalds has a low cost strategy and also provides a dividend yield to its shareholders with its stock. A low cost strategy has its advantages, it focuses on customers by driving up its market share in volume. The stock currently sits at $158.78, as of Sep 19, 12:01 PM with a 2.54% dividend yield. This is a great example of a low cost strategy company focusing on delivering and growth.

In the technology sector, ZenDesk is a company that focuses on a differentiation strategy. The company is an one-stop shop focusing on customer service that empowers the whole organization. They create priority through service and destroying the stereotype that customer service is something that’ll take forever. Customer service differentiation is important in achieving the successful differentiation strategy,

Thread: Week 4 Post: Week 4 Author:

Posted Date: September 18, 2018 8:23 PM Status: Published Overall Rating: Brian Mcleod

The main differences between a low-cost strategy and a differentiation strategy are that in a low- cost strategy, the company tries to keep costs minimal as possible so the prices they charge customers still produce a profit while forcing competitors to either match the price and possibly take a loss or charge a higher price. In a differentiation strategy its more about what they have to offer that gives them an advantage over other competitors, which leads to charging a premium for their products which leads to greater profits.

Low cost gets its advantage over customers by driving up its market share in volume where as a

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differentiation strategy relies less on volume and more on what it offers to gain market share.

Another difference is a low-cost strategy has a lower cost structure compared to a differentiation strategy (usually) because a differentiation strategy has a higher cost structure to be able to add the options to its products.

I picked McDonalds as a company that offers a low-cost strategy. I picked them because I have been around them and seen the progress they have made with their dollar menu and other items. I would say the strategy has worked as they continue to win against other companies like Burger King for customers.

T-Mobile is a company would has tried to differentiate itself from other wireless carries. I picked them because they bombard the airwaves with commercials and always interested me. They have been successful in offering attractive alternatives to big giants like Verizon and AT&T.

https://www.fool.com/investing/2018/03/07/t-mobiles-competitive-advantage-stems-from-its- big.aspx

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