Low Cost or Differentiation

1. Using scenario planning, analyze the pros and cons of each alternative. option of low court Pros * New traffic for budget conscious guests * more sales volume Cons * to a greater extent needed seat to hold convergence * Less increase available because selling harvest-feast faster * much labor required for replenishment of inventory and store front * More disgruntled employees from sheer volume of customers * High employee turn everywhere from stress substitute of specialization Pros * Highlights company strengths and niches * Attract target customers * Higher revenue per proceeding imprinter cost because specialized inventory needs less space Cons * Alienate customers that cant afford racyer cost of product * Higher market risk because business is less diversified secondary of using both low cost and differentiation Pros * More customer volume * More diversified customer base * More opportunities by dint of greater sales options Cons * Need more space * Labor prov ide feel more drained due to employees needing to have more product knowledge on a higher volume of product * Low cost diminishes the prestige and experience of the high cost * Low cost stigma diminished by expensive product . Think somewhat the various clothing retailers in your local malls and city, and analyze the choices they have do about how to compete with one another along the low-cost and differentiation dimensions. Low cost Macys has gone to lower price points and over time lost prestige in the market. Macys has attempted to go for more volume but because of the recession was always empty whenever I walked into the store. They stopped lower cost because they didnt want to lose carriage of the go to fashion locale, instead they were being viewed as the cheaper last normalize stop.Macys is now trying to stop the decline in their paper but are still stuck in the middle, like the example in the book. Differentiation In the last five years Nordstrom seems to be the go to u p to date fashion stop for people seeking high end fashion. The prices are noticeably higher. Nordstrom clearly differentiates themselves through superior customer service, cleaner stores, and top designer name brands. Nordstrom differentiates themselves further with a skilful unlimited open return policy, free alterations and tailoring, helpful employees happy to be there, and employees happy to help showing why they are worth the free money.