LOW-COST STRATEGY

LOW-COST STRATEGY

Explain how Vanguard built its low-cost advantage in the industry and why a low-cost strategy can succeed in the industry.

There are several strategies which were applied by Vanguard to be able to build its cost advantaged in the industry. The first strategy employed by the company is having other low-cost manufacturing locations with high quality products. This strategy gave the company a low-cost advantage to put the low price on the products which it provides in the industry. Cost is one of the most important factors that provide a company with a competitive advantage. This strategy plays an integral role in attracting consumers and ensuring that the company is able to earn revenues based on large sales volume (Laszlo & Zhexembayeva,2017).

The second strategy applied by Vanguard to build its low-cost advantage is through having an everyday low price as well as the cost of manufacturing low. This strategy has helped the company be successful in the industry..

A low-cost strategy can succeed in the industry because it increases operating efficiency. This strategy will succeed in the industry because it will create cultures that help in the creation of cost advantages. Low-cost strategy can succeed in the industry because it will enhance operating efficiency, thus ensuring organizations in the industry remain successful.

 

 

References

Laszlo, C., & Zhexembayeva, N. (2017). Embedded sustainability: The next big competitive advantage. Routledge.