Strategy Development a Directional Essay

Pages: 2 (684 words)  ·  Bibliography Sources: 2  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business

Management therefore needs to be very efficient. A look at different cost leaders highlights that there are many different ways to achieve this, and it is not just about cutting costs.

Wal-Mart succeeds as a cost leader because it invests heavily in distribution and logistics. The company has become a leader in the field and the result is that it holds inventory for a relatively short period, and invests less in warehousing space than competitors. This allows it to have goods in stores ready to be sold, rather than in warehouses or on trucks. But it is a leader in the field because of its thinking on the subject and its investments in technology. Another cost leader is Costco, and they pay their workers high wages and benefits, much higher than the industry. This works for them because the workers stay with the company. The expertise they bring allows for the company to utilize fewer workers, and for the operations to be incredibly efficient with very few errors of any type.

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Vertical integration is buying up or down the chain of movement. An example is when PepsiCo bought Pepsi Bottling Group, or the hop farms that Anheuser-Busch owns in Idaho. Horizontal integration is buying a similar but related business. Starbucks does this -- they bought a tea company, a juice company and a bakery company recently. Those are all examples of horizontal integration. I'm not sure of examples within health care. Those companies tend to be specialized. You don't see pharmaceutical companies buying hospitals or insurance companies (horizontal). You don't see vertical either -- not a lot of hospitals own medical schools or medical equipment supply companies.


QuickMBA. (2010). Foreign market entry modes. Retrieved February 6, 2014 from

Essay on Strategy Development a Directional Strategy Assignment

QuickMBA. (2010). Porter's generic strategies. Retrieved February 6, 2014 from [END OF PREVIEW] . . . READ MORE

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How to Cite "Strategy Development a Directional" Essay in a Bibliography:

APA Style

Strategy Development a Directional.  (2014, February 6).  Retrieved May 10, 2021, from

MLA Format

"Strategy Development a Directional."  6 February 2014.  Web.  10 May 2021. <>.

Chicago Style

"Strategy Development a Directional."  February 6, 2014.  Accessed May 10, 2021.