Business Planning and Development Essay Example | Topics and Well Written Essays - 2500 words

Business Planning and Development - Essay Example The company offered the products and features that were acceptable by the customers. This not only increased the sale rate but also reduced the cost of products. The cost leadership strategy had a positive impact on the company. It ignored the different market segments and focused on the mass market (Porter 1997). The advantages of employing this strategy were that the company charged lower prices, yet got the same profit. The market shares were protected from the rivals. The business had opportunity to reduce its price to compete with the substitute products. All these advantages have secured the business and gave the rivals and competitors a hard time. The difficulties that the company had faced were the technological advancements that the rivals have brought, like better features in low price. The imitation ability of the rival was another hurdle for the company (Cost Leadership Strategy 2010). Following the low cost strategy, our company has targeted less market as compared to ri vals to have a balance between price and cost of the product. The other difficulty that the industry has encountered was related to the market share. Some of the rivals also opted for the low cost leadership strategy due which our market shares reduced. ... The biggest challenge for our company was to provide unique services to the customer and to satisfy maximum number of customers. In achieving this target, we have invested and worked a lot. We have hired consultants, creative teams and professional marketing staff. All of these helped in making a position in the market and increasing the sales and profit of the company. The plans that the company has for future includes expansion of target market, enhancement of customization for the consumers and increase in production units. This requires more assets and operating expense. For that, the company needs loan from the bank so that the operations and sales do not get messed up due to lack of expenses and opportunities. The trade off related to these expansions may be the cost versus benefits. The benefit that the company may get is the profit. And the cost is the cost of expansion and other operating expenses. Benefits and costs are often expressed in monetary terms and are adjusted wit h the money value, which makes the flow of benefits and of costs to be expressed on a common basis of their actual and present value. Â  The biggest problem with this trade off is the accuracy. It’s not necessary that the estimation of the cost and its benefits is always estimated accurately. If the things do not work out, the cost versus benefit may subject risk of bankruptcy. For that, the company must have enough operating expense by which it can keep the company working. The establishment of the business requires a lot of sacrifices and commitment. On a personal note, the commitments that I had to make include the sacrifices of one’s own needs. The lack of prioritizing basic