A Broad Cost Leader will attempt to be the low- cost producer in every segment of the market. It will have good profit margins on all sales while keeping prices low for price-sensitive customers.
- Firm Profile:
More likely to reposition products than introduce new ones to the market
Capacity improvements are unlikely to be undertaken (may run overtime instead)
Automation may be pursued to increase margins
Investments will be financed with debt and/or stock issues
Tends to spend less on promotion and sales
Focus on Market Share, Profits, and Stock Price
Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a broad cost leader strategy. From last year's reports, which company would be the strongest competitor?