The competitive strategy adopted by ABC Inc
The competitive strategy adopted by ABC Inc., was cost leadership that aided garnering increased market share in the local market in an aggressive manner by triggering a price war cycle in the Chinese market.
The pertinent operational strategies adopted by the company laid stress on research and development as well as product innovation. This was followed by investing on resources for increasing production capacity by adopting a 24 hours factory day. The strategy of in house production of spare parts coupled with a planned move towards self-sufficiency in a dynamic market helped the company in a large way. A strategic fit operation that has resulted in reduction of manufacturing costs through the operations strategies was the key point.
The operations strategy is interwoven with the competitive strategy which has translate in to low product costs, offering the company a high degree of flexibility.