Powerful tactics in applying Cost leadership

Companies may choose to follow Cost Leadership, which is a better choice for corporations rather than small business.The rationale Small businesses might not be able to produce huge amount of products. Firms that persue Cost leadership have benefits like achieving economies of scale by providing the lowest price and cutting on budget by finding the lowest suppliers.

Other benefits of Cost Leadership strategy are achieving high profitability margins and also winning against the recession. Walmart added 400 billion in revenue through applying this model in 2009.

So what are some of the aspects that cost leadership followers must consider. Here are three powerfull steps
1) Concentrate on your customers and their taste. Dig deep to provide better products while maintaining low cost.
2) Find the lowest suppliers and lock them in. Most low cost airlines are pioneers in applying this strategy.
3) Since your products are easy to copy, add value to your product. Give more consideration to porter value chain. An example is providing a 24 hour online customer care service.this would let your customers recognize your brand immediately.

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Focus-differentiation (A new look into Strategy)

Most firms question if they should use a single generic model or they should use a a mixed one. Whether you should use Differentiation or Focus depends on your market needs. Infact there is much similarity between the two. Both of them stresses on quality. In Focus, companies target a niche market while carefully relying on a specific and a narrow segment of the community. Although choosing focus might limit your target customers, its a less competitve environment. Thus when focusing, branding is the main element . An example of a firm applying focus is Ferrari targeting the luxurious sports car industry.

In my opinion, a better strategy could be implemented if we mix both differentiation and focus. This is a dominated focus less dominating differentating model. In a Focus-Differentiation model  a company a company starts by applying focus then differentiate and once a chieved a recognized brand expand. Let's put it in practice.

An example of a company who wants to gain a competitive advantage in the food industry.
Practically the steps are
1) Enter Organic food industry (Focus)
    Target fitness centers
2) Provide high quality products (Differentiate)
    enhancebrand awareness
3) Expand to the healthy food industry, from restaurants to smoothie bars (Expansion)

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Classical Management Evolved

Shall I say we all think that Classical Management is dead. But i think not. It's being evolved.
Classical management which take little or no sense of the external world as well as the human aspect of the business had been criticised since the howthorne effect. Its critical to note that human labour is considered human machine in classical management. This concept is underpinned in the Henry  Ford way of management with the famous saying "Any customer can have a car painted in any colour he wants so long as it is black". This type of management stresses on efficiency as the focal point of classical management. Now is it possible its evolved again; Definitely yes.

The education system partneting with organizations has identified companies needs as deployment of Human Machines that accept overall rules from employers. This is clearly seen in big businesses such as Nike and Walmart.Enter a mall and you will find a set of human machines serving in counters. They might pretend they are not human machines but in reality they are being over-sized by traditional management firms that hire them.

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Identifying Your Company Culture, How Crucial!

Its quite essential for the employees to fit with the Company Culture. Be it the artifact , language or any element comprising the culture as a whole. Identifying the company culture is crucial at the point of first setting up a company and its long term strategy. Zappos for example hire and fire based on their company culture. This means employees that did not fit into the company culture are fired immediately. Zappos culture is much of an open environment based on the right aspect of Strategic HRM.

Tony Heisch of Zappos mentions that what led Zappos to be sold to amazon is the failure to identify its culture from the beginning, that once the company expanded the matter was brought to discussion. This is where employees of a different culture started to join the company and inturn change or affect the Zappos culture.

Hence, should companies learn from the Zappos Experience. Yes obviously, there is a trend in which organizations especially IT firms are concentrating in setting up the culture from the start-up phase to building up a small business.However, setting up strict rules of firing and hiring in an organization might be of an internal threat that will eventually led to the company being sued because of it's illegal discrimination.

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The TV Ads dilemma

TV ads, call it what ever you want to call it. Is it the right marketing strategy. Well, lets unfold the un written truth about it.  its less than a century now since the start of TV Ad Campaigns.....hold on, do you say that tv ads does not work?

Tv ads work to a level but this type of disturbtion marketing as Seth Godin call it does not and will never achieve lock in. Am I over whelming you. No, what is it worth if the customer is interrupted and never been asked for permission. The result is the customer will choose another competitor instantly the moment it post its ads. Take for example Colgate Palmolive vs P&G Crest. None of the  two players asked for permission and hence their tv ads pulled the mass's into cross recognition. This means ads being shown more often of a specific brand is chosen over those shown less often.

Very true that even though this type of marketing worked with out achieving brand loyality, it's been able to lure and drow attention of all the demographics and thus drastically failed to define its target customer. Let's take Coca Cola, which targets every body from men to ladies to kids. Should it be more specific in targeting and ask permission!!!!

Fit The Shock Concept in Task Planning

Fit The Shock Concept in Task Planning

Plan for the task the night before
Indeed this would let your brain configure and find different ways of how to implement the task.
Think about it. isn't it amazing...

You'll be able to dream about the task and find better ways to implement it the whole night.
What can it be...good question...
It can be a sales meeting, public speaking etc.
More ever, you are Keane to let your brain fit the shock

Did you you just said fit the shock, Yes Exactly...OK let me get to it directly

"Fit The Shock" is a term I use to describe the reality where your brain conform to the plan Virtually.


How to apply, let's Put this in Practical
1) Public Speaking Next day
2) Plan the night before
    You could use Mind Mapping or Note Taking
3) Dream about it
4) Fit the Shock
    The task is completed Virtually and Internally
5) Apply Externally Next day

Moreover, "Fit the Shock could be aquained in this plan as a successful Output

How, here is the simple steps you could apply for planning your tasks
1) Define task
2) Plan
3) Dream
4) "Fit the Shock"
5) apply