adoption of the strategy of Broad Cost leader


The team decided to adopt the strategy of Broad Cost leader to attempt to gain a competitive edge over the competitors. During round 5, the team’s market share had fallen from 19.77% to16.86%. below is a figure illustrating the market shares of the companies during round 5.

Don't use plagiarized sources. Get Your Custom Essay on
adoption of the strategy of Broad Cost leader
Just from $9/Page
Order Essay

The Broad Cost leader strategy was aimed at increasing the company’s market share by increasing the cost of products and supplying products that were uniquely superior to those of competitors. Such products would help enhance customer loyalty to our product line.

The strategy however did not succeed in increasing sales since total sales fell from the all-time high of $ 179,948,861in round 4 to $ 176,416,313. This may be attributed to increased concentration on reduction of variable costs from $ 125,646,796 to $ 117,640,260. The company also succeeded in utilizing the plant better in round 5 compared to round 4. The figure below summarizes the sales for this period.

The sizes of all products in all the markets were kept the same from the previous rounds. However prices for all the products were increased marginally. This was in accordance with the strategy of broad cost leader and partly contributed to the increase in sales revenue and drop in market share. As the law of demand states, increase in price causes reduction in demand. However, the differentiation of products caused development of customer loyalty which is better than plain increases in sales revenue. Below is how the company performed on customer satisfaction.

The sales promotion budget for all the products was also increased which contributed to the rise in market share. Marketing helps build a good image for the product and increase consumer’s awareness of the products. In round six, the marketing budgets should be reduced since the company has already established customer awareness and recognition for the brand.

The company’s productivity index rose from 116.07% in round 4 to 116.60% in round 5. The team however had to put in 8% overtime to achieve this improvement. There was also need for an emergency loan of $ 24,956,822 to improve the productivity of the company. The figure below analyzes the company’s productivity.

The company’s market share was higher in the high-end segment compared to the low-end segment, which could have contributed in the negative ROS. Its size segment share was also considerably lower compared to that of most of the competitors. Then figure below shows the analysis of our company’s market share.


The company made a loss of $ 5,419,920. This could be attributed to the increasing cost at which the company operated. The prices the company charged for its products could not yield enough sales revenue to offset the cost incurred in production of those items. Below is a cash flow statement for the company analyzing various costs and revenues.

The value of the inventory at the end of round 5 was 0.00. This means that each of the potential units of inventory was not sold during the round and therefore, stock was not maximized. Not selling all the potential units of stock may be one of the reasons why the company made the loss. The figure below is the balance sheet of all assets and liabilities held by the company in all the rounds. Inadequate sales may cause the company to lose its competitive edge to competitors. It is necessary to have enough stock at all times to meet consumer’s demand. Otherwise, they will opt to go to competitors.

The figure below summarizes the overall company performance in this round.

Product line performance

The performance of various products offered by the company was closely monitored to see the effects of the strategy on performance. Our products were Baker, Bead, Bid, Bold and Buddy. Baker had a market share of 23% selling 2600 units to the market segment. It was the best performing product under a promotion budget of $1300. In the traditional market segment, Baker ranked second in terms of consumer awareness at 91%. However, accessibility of the product was at low 41%. The company has to work on this and improve accessibility. Baker’s overall market share was at 22.7%, higher than the expected 20.1%.

In the low-end market segment our product Bead had a market share of 13%. It had a marketing budget of $1300. Customer accessibility to the product was higher at 53%. The list price for bead was $17 while that of baker was $23. The reason why baker had a higher market share than bead could be because it was better differentiated than bead. Clients have a tendency to prefer differentiated products because they are perceived to have more advantages and better quality than the rest. Bead’s market share overall was at 13.1% higher than the expected 9.4%.

In the high end market segment, bid had a market share of 16%. The list price in this market segment was at $38. The low market share could be attributed to the high unit price charged compared to the low prices of competitor’s products. The accessibility of the product on the market was average at 49%. However, increasing the products’ accessibility could have increased its market share compared to those of competitors. Bid had a 16.3% overall market share higher than 12.4% expected market share.

Our product bold was in the performance market segment. It had a low market share at 22%n and selling 990 units. The product was the lowest priced compared to those of competitors in this market segment but the low price was not enough to attract enough customers. The low customer accessibility at 33% may have been a key factor in lowering the product’s market share. Increasing the promotion budget may help the company realize more market share in this segment. Bold had an overall market share of 22.4% lower than its expected 32.4%.

Buddy was the product we fielded in the size segment. It had the lowest market share at 11% selling 490 units. One of the reasons for the low market share could be the high price of $33.50 while competitors charged comparatively lower prices. The high price may have been a factor that discouraged most potential clients from consuming the product. Buddy also had the lowest customer accessibility in this market at 33%. However, buddy managed to exceed its expected market share of 5.9% by achieving an overall market share of 10.7%.  below is a summary of performance of our product line. The figure below summarizes how our product line performed.


Functional area strategies and performance

Our strategy required us to have a strong financial fall back position in terms of capital and acquisition of additional products and more investment in upgrade activities of the main fixed assets. To achieve this, it was necessary to get an emergency loan which we did. As already described, our main strategy was to invest in product differentiation to make our products more desirable to the clients. To become a market leader in terms of prices, we needed to improve our products and differentiate them from those of our competitors.

We also had several issues with the levels of our inventory. Therefore, for the next round, we will adopt the policy of keeping a maximum of 1/6 of all sales as our stock. Excessive inventory could cause dragging of the cash balance and the overall performance of the company. On the other hand, having low inventory levels could cause shortages and inability to meet the customer’s demands. This could lead the client to migrate to a competitor’s products.

Our sales strategies worked since most of our products achieved a higher market share than we had expected. Our sales target for the next round will stay within reasonable limits to ensure they are workable.  One of the most effective ways to ensure that the sales forecasts are realistic is to keep the current demand situation in mind. The strategy was good enough to gain the company leverage valued at 3.69, higher than any of the competitors’.  The figure below summarizes the yields realized from adopting the different strategies.

During the previous rounds, enough money was spent on product promotion and creating awareness among the consumers. During these later rounds, less money will be spent since consumers already know about the product. The money can be utilized better by investing it in the sales budget. this could help uplift the company’s performance. Better budget planning can be useful in helping the team reduce need for loans to supplement the already allocated money.


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]