Leadership Strategy While All Businesses Professional Writing

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Wal-Mart has been successful in integrating into their unique value proposition and messaging a core value of their entire organization, and therefore the cost leadership strategy is seen as credible (Allentuck, 2005).

In the services industries, the cost leadership strategies of Southwest Airlines, and Ryanair whose CEO Michael O'Leary visited and studied the business model of Southwest, further illustrate how cost leadership strategies can lead to profitability over the long-term (Box, Byus, 2007). For Southwest Airlines, their cost leadership strategy is predicated on creating a competitive enough price point so that customers will consider them a viable alternative to driving (Box, Byus, 2007).

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Given the purchasing strategies Southwest has relied on consistently for oil futures contracts, the challenging yet achievable goal has been realized.

Conclusion

Organizations that achieve the greatest possible results from cost leadership strategies concentrate on broad markets where their price leadership can be translated into a significant competitive advantage. This often involves defining their market position as one of being a lower-priced substitute to another product or service. For Wal-Mart the position of low price leader is undercutting higher-end retailers and for Southwest, making air travel as affordable as driving......

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