Topic 4-Business Strategy

Cost leadership- One of the good example of cost leadership is CostCo. They provide a lot of different product to customers. From furniture to electronic devices, from food to clothing, customers can purchase product at lower cost compare to retail stores by getting a larger amount. By selling product as whole seller, Costco only need to pay for cost for warehouse, they don;t need to pay for the middle man as retailer does. They don't need to open a lot of stores around the countries in order for customer to purchase.
Differentiation- Starbucks uses this strategy when they promote their product. They offer coffee that has French or Italian flavors which most of the normal coffee shop can't provide. They also provided comfortable atmosphere for customers to enjoy their product. These kind of product provided their customers a unit experience so they won't change to other coffee shop easily.

Focus-Old Nave and Banana Republic are both owned by the same company. By opening two brands, the owner can focus on two different segment of customers. While Old nave target people with lower income, Banana Republic is more appeal to office ladies or business man in a higher level.