Your Foundational Strategy is...

A Cost Reducer excels at taking costs out of the system. Operational efficiency, budget discipline, and economies of scale are often key areas of strength. Being a Cost Reducer doesn’t necessarily imply that product quality is low, but it does indicate that customers are primarily attracted to your brand because of the economic benefits. Innovation is not typically a focus for Cost Reducers. Rather, strategic focus is generally directed toward finding ways to lower the cost of producing and delivering product. Core competencies may be in the realm of supply chain and logistics, offshoring, outsourcing, lean practices, or volume leveraging. 

 

Walmart, Nissan, Spirit Airlines, Motel 6, MacDonald’s, and IKEA are some prominent brands known for their low-cost value proposition. 

Knowing your company’s strategic personality type is critical to deciding where to focus your strategy. Attempts to execute strategic initiatives that contradict your company’s core competencies and established culture will most certainly face significant internal resistance and ultimately fail when major challenges are encountered.