Question

High Road” companies pledge themselves to “provide family-friendly benefits,” “offer flexibility,” “pay a livable and fair wage,” and generally treat their workers well. While they pay more for labor, many High Road companies are successful, including companies such as Costco, QuickTrip, and Trader Joe’s. Some consultants recommend the High Road approach. How can “High Road” companies compete with “Low Road” companies like Walmart while paying more for labor?

Answer 1

High Road companies have availability of creating quality products as their working environment is extensively good. Can take disadvantage of having extensively good operating structure with a proper availability of creating qualitative products with increment in the prices. As Walmart and other low road companies have their operation structure on the basis of low cost market differentiation approach, taking the specific condition on the basis of excess of quality implementation would provide extra benefits to the high road companies with better organisational culture. As these companies possess better standard of operation due to their excessive quality implemented in the workplace it helps them to maintain a certain standard of operation that directly affects overall efficiency as well as productivity of the system and benefit the organisation in a positive manner for competing with the lowroad organisations like Walmart.