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Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A...

Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A best cost strategy can be an effective level strategy to the extent that a firm whose fixed costs and overhead are very low relative to the competition. What is an example of an industry where you think a best-cost strategy could be successful? How would you differentiate a company to achieve this success in this industry? Provide an example of a firm in Jacksonville that is following a best cost strategy? Explain.

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ANSWER: What is an example of an industry where you think a best-cost strategy could be successful? Best cost strategy can be understood as a business strategy in which the firm provides the differentiated and better quality product at a relatively lower price than the competitor in that industry. Retail stores like Wal-Mart I believe are the best example on best-cost strategy. This strategy can be used effetely specially in case of Restaurant or food industry where the firm offers the large variety of food items which is different in taste, appearance at a lower price. For example Owners Kahala and Kat founded Ninja Plate Lunch in Portland, Oregon, to offer large portions of delectable Hawaiian foods cub as pulled pork for only around S5 * How would you differentiate a company to achieve this success in this industry? The company needs to study the market, the competition and possible substitution products, they need to work with the best suppliers so they can achieve succes:s Provide an example of a fim in Jacksonville that is following a best cost strategy? For example McDonalds follows the best cost strategy McDonalds has been extremely successful with this strategy by offering basic fast-food meals at low prices. They are able to keep prices low through a division of labor that allows it to hire and train inexperienced employees rather than trained cooks

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