Choose a firm with which you are familiar in your local business community

Answer:

The firm to which I am familiar is the locale. It is Austin texas-based company that helps people to find the information about places to east drunk and enjoy in their locality. It is a large community of local people in around 60 cities.this strategy contains a solid winning market share by targeting cost-sensitive consumers. It is achieved by providing products at flowers possible prices in the targetted market.

In order to be successful in this strategy company is using four approaches:

• having a high asset utilization.
• having a low indirect and direct operating cost.
• control over all aspects of the value chain that contain all functional groups.
• This firm is using this strategy in an effective manner.

However, it might face some difficulty implementing this statutory special when the firm is small and it leads to low client loyalty because they would switch to the cheapest available product. Low [priced products are also linked with low-quality products. That is why this firm may face some concerns with quality. it would be better for this firm to switch to a differentiation strategy in the future.