Mission Statement
Our original strategy was to focus on our traditional and low-end markets. We decided that all products needed to shift over time to be in line with traditional and low end consumer preferences. Our plan was to keep R&D and other costs as low as possible so that we could have low prices as part of a niche cost leader competitive strategy. We planned to increase automation for Cake and Cedar in order to lower production costs. We believed that our strategy would lead to a higher ROS, ROE and stock price.
The Chester Company did an excellent job at living up to the company’s mission statement. After our initial struggle in the early years, the company stabilized and began to reap the benefits of good decision making. We did not do a great job of following the niche low cost leader strategy. Although our plan was to move all products into the traditional and low end markets, we kept them in their original markets. This worked well for several of our products, but was difficult to maintain for all of them. However, we did keep our prices lower than our competition and used TQM and automation to keep our costs low.
Our profits are growing each year and our existing products increasingly receive good ratings from consumers. The reasons that the score is not higher is …show more content…
According to Entrepreneurial Insights, “There are two traditional options for businesses to increase profits – decreasing costs or increasing sales.” One of our main focuses as a company was to utilize our resources in an effort to maximize our potential at an effective price. In doing so, the Niche Cost Leader Strategy allowed us to dominate price-sensative markets as well as to offer the same products as our competitors all at lower prices. We focused primarily on the traditional and low-end segments of the market. This allowed us further advantage in different
Our original strategy was to focus on our traditional and low-end markets. We decided that all products needed to shift over time to be in line with traditional and low end consumer preferences. Our plan was to keep R&D and other costs as low as possible so that we could have low prices as part of a niche cost leader competitive strategy. We planned to increase automation for Cake and Cedar in order to lower production costs. We believed that our strategy would lead to a higher ROS, ROE and stock price.
The Chester Company did an excellent job at living up to the company’s mission statement. After our initial struggle in the early years, the company stabilized and began to reap the benefits of good decision making. We did not do a great job of following the niche low cost leader strategy. Although our plan was to move all products into the traditional and low end markets, we kept them in their original markets. This worked well for several of our products, but was difficult to maintain for all of them. However, we did keep our prices lower than our competition and used TQM and automation to keep our costs low.
Our profits are growing each year and our existing products increasingly receive good ratings from consumers. The reasons that the score is not higher is …show more content…
According to Entrepreneurial Insights, “There are two traditional options for businesses to increase profits – decreasing costs or increasing sales.” One of our main focuses as a company was to utilize our resources in an effort to maximize our potential at an effective price. In doing so, the Niche Cost Leader Strategy allowed us to dominate price-sensative markets as well as to offer the same products as our competitors all at lower prices. We focused primarily on the traditional and low-end segments of the market. This allowed us further advantage in different