Small Group Breakout Exercise [LO 6-1, 6-2] Low Cost or Differentiation? Form groups of three or four people, and appoint one member as the spokesperson who will communicate your findings to the class when called on by the instructor. Then discuss the following scenario. Y ou are a team of managers of a major national clothing been attracting your customers Or should you try to pursue both a who buy at the low end of the low-cost strategy and a differentia- chain, and you have been charged tion strategy? with finding a way to restore your price range. Second, small online retailers provide trendy, high-price 1. Using SWOT analysis, analyze organization's competitive advan- tage. Recently, your organization designer clothing and are attract- the pros and cons of each has been experiencing increasing ing your customers at the high alternative. competition from two sources. First, end of the market. Your company 2. Think about the various discount stores such as Walmart has become stuck in the middle, clothing retailers in your local and Target have been undercut- and you have to decide what to area and the ones you shop ting your prices because they buy do: Should you start to buy abroad regularly online. Analyze the their clothes from low-cost foreign so that you can lower your prices choices they have made about manufacturers while you buy most and begin to pursue a low-cost how to compete with one of yours from high-quality domes- strategy? Should you focus on another along the low-cost and tic suppliers. Discount stores have the high end of the market and become more of a differentiator? differentiation dimensions. Be the Manager