Generic Business-Level Strategy - Research Paper Example

In the generic business level strategies, New York Times Company can be positioned as a leader in cost efficiency. The organization has a good and wide reputation in the industry. Therefore, it enjoys some internal efficiency that would see it have a margin that would maintain above-average profits. Moreover, internal efficiency would be instrumental in sustaining the cost to the clients since it would attract customers to purchase the product. The organization engages in standardizing the product to have generic goods that are satisfactory to a considerable number of clients and offer it at the lowest price.

This generic strategy has been an essential tool for the company in the industry considering it is quality level. The New York Times Company offers its products at the industry’s average prices, and this has enabled it to gain a share of the market. The New York Times company business problem originated from its failure to use online services earlier enough than its competitors. It is, consequently, sensible for the company to implement integrated cost leadership and differentiation strategy.

This strategy is new and hybrid and had gained more weight and popularity, especially in today’s increased global competition (Janice, n.d). In essence, the organization can utilize this strategy to position itself and enhance its ability to adapt faster to technological changes. In addition, this strategy would be a more efficient core competency in the product line. It would also be useful in producing products with differentiated characteristics that are treasured by the customers and providing the product at a lower cost in comparison to those of its rivals.

Question 2
The airline industry is one industry in which companies have to adapt to earn profits continually. In this industry, it is inevitable to charge high ticket prices to make profits. Southwest Airlines confronted this challenge by marketing itself as a cost leader. The organization tried to provide the lowest prices possible by being more efficient relative to other airlines. The company had to reduce the time spent by their planes on the tarmac to keep them flying and raise profits.

Differentiation strategy is another key tool used by firms in the airline industry to stay competitive. Virgin airlines are well known for using this strategy. The company differentiation strategy is two-fold: service and pricing. Virgin Airlines minimizes costs related to air travel to be able to remain competitive. Furthermore, Virgin has various service airlines with online plane WIF, full-service meals, and touch-screen seatback relaxation. Read More