Answer to Question #220671 in Management for TANVI JARIWALA

Question

You have been appointed as a Strategy Consultant to Godiva Chocolatier which is a Turkish-owned chocolate maker which is jointly owned by Turkish conglomerate Yıldız Holding and MBK Partners wanting to enter India. Godiva was founded in Belgium.

Which one of Porter's Generic Strategies would you choose to be operational in India& Explain the reasons in detail behind your choice of strategy? Once the strategy has been chosen, explain the categories of customers you would target along with the price points? 

Answer 1

The cost Leadership-This technique is primarily used to enhance a company's profitability. When a product's notoriety and popularity grow as a result of its low price, a firm earns more money than planned. New entrants to the sector face challenges as a result of the Cost Leadership approach. Companies that follow Cost Leadership will build a thriving market with long-term viability that will not be disrupted by any new entrant.