Examples Of Low Cost Strategy

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Low-Cost strategy in an organization:
Customer demand for the product, sales and revenue of a product should be higher in order for an organization to implement low cost strategy initiative in manufacturing the product. Low cost strategy is one among the three other marketing strategies which are resourceful in increasing the product demand in the market. Organization value, demand for the product, similar product producing competitors, quality of the product and availability in the market are primary concerns before implementing a low cost strategy by an organization.
Low cost strategy is also dependent on the economies of scale as it is proportional to the higher volume of production of a product based on higher demand for the product in the market will result in low cost in manufacturing the
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Vertical integration of management could be defined in simple terms as the investment made in order to expand or establish new operations apart from the current field of operations in order to increase the firm’s visibility and also to decrease the dependability on a single set of business operations. Such integrations include risk factor as the organization is completely changing the business cycle and entering a new set of business operations. It includes risk management, people’s management, understanding the new market conditions to integrate into a different organizational culture etc. Example: Vertical integration offers to expand business operations in various industries such as Cisco, Microsoft, Intel, Samsung mobiles, Samsung refrigerators and Samsung electronics etc. It is complicated process but might return high returns based on calculated investments in various business operations could expand the horizons of the organization managing multiple production values in the capital

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