Question 2 John Lewin company is keen to reduce costs The company prioritise keeping labour costs down in the shops distribution centres and head office. Senior Management team members met with the new buying team and discussed sourcing suppliers in Southern Poland. In their view,"buying cheaper stock will add to the business profits'. Reflecting on the above information, Porter's (1985)Competitive Strategy in operation in John Lewin is known as __ A. Low-cost Leadership Strategy B. Differentiation Strategy C. Focused Strategy D. All of the above

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Question 2 John Lewin company is keen to reduce costs The company prioritise keeping labour costs down in the shops distribution centres and head office. Senior Management team members met with the new buying team and discussed sourcing suppliers in Southern Poland. In their view,"buying cheaper stock will add to the business profits'. Reflecting on the above information, Porter's (1985)Competitive Strategy in operation in John Lewin is known as __ A. Low-cost Leadership Strategy B. Differentiation Strategy C. Focused Strategy D. All of the above

Answer 1

Porter's Competitive Strategy presents three key paths a company can choose to achieve competitive advantage: Low-cost Leadership Strategy, Differentiation Strategy, and Focused Strategy. From the details given in the question, it seems clear that John Lewin is attempting to lower costs by focusing on reducing labour costs and sourcing cheaper stock. This represents a Low-cost Leadership Strategy, where businesses Aim to achieve the Low-cost producer status compared to the competition. Other strategies like Differentiation Strategy focuses on making product/service unique or Focused strategy that targets a specific, narrow part of the market are not mentioned in the scenario given.

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