Accg330 Week 3

ACCG330 Week 3 Seminar a. According to Porters (1980) private-enterprise(a) st wandergies, Baldwin currently uses specialization scheme to respond to the opportunities in the international environment and developing a competitive advantage. Baldwin focuses on how to name their products with competitors, rather than competing in the worth. There are several factors refer that Baldwin is using differentiation strategy. Most of Baldwins gross sales were by means of speciality wheel shops. This means Baldwins bicycles are instead different with other brands bicycles according to customers perspective. Baldwin also creates an image of organism above average in none and price. The differentiation strategy can be achieved by improving the quality of products. And the price of Baldwins bicycles is above the average, which means they are not competing in price and not using the cost leaders strategy. Baldwin has diversified product set off, which includes 10 models, ranging from a small pundits model with training wheels to a deluxe 12 speed adults model. Diversified product range could make Baldwin outstand from other competitors. Baldwin currently is operating its plant at about 75% of a one-shift capacity and has an annual rate of sales of about $10 million.

We can conclude that Baldwin is not a big company with a lot of sales volume. And Baldwin lacks of the advantage of economies of scale. b. If Baldwin took up Hi-Valus offer, this would change the way Baldwin competes from differentiation strategy to cost leadership strategy. Cause Hi-Valu indispensablenessed to purchase racks from Baldwin at lower prices than the wholesale prices of comparable bikes sold to Baldwins speciality bicycle shops. And according to the figures given, the previous selling price is $110.05. If Baldwin accepts the offer, the selling price would be $92.29. According to cost perspective, Hi-Valu wanted the Challenger bike to be different in appearance from Baldwins other bikes. This... If you want to get a full essay, order it on our website: Orderessay

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