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 C D A B

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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 C D A B

Answer 1

This question is focused on understanding Porter's generic competitive strategies. It explicitly states that John Lewin Company is eager to minimize its costs. They concentrate on keeping labour costs low and they are considering purchasing cheaper stock from suppliers. According to Porter's framework, this kind of behaviour indicates a Low-cost Leadership Strategy. This strategy aims to gain a competitive advantage by having the lowest cost of operation in the industry or market. Contrarily, differentiation strategy focuses on unique features of a company's products or services, and focused strategy concentrates on targeting a particular macro market segment. Therefore, option A "Low-cost Leadership Strategy" is the fitting choice for this situation.

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