TYPE OF

STRATEGY

COST
LEADERSHIP

INDUSTRY

COMMENTS
McDonalds primary generic strategy is cost
leadership. In Porters model, this generic strategy
involves minimizing costs to offer products at low
prices. As a low-cost provider, McDonalds offers
products that are relatively cheaper compared to
competitors.

McDonalds

Vertical integration is a strategic objective linked to

McDonalds cost-leadership generic strategy. For
example, McDonalds owns facilities that produce
standardized mixtures of ingredients. Also, cost
minimization is a financial strategic objective based
on the cost leadership generic strategy.
As the company grows, we intend to continue to
strengthen our reputation as one of the Philippines
most innovative developers in the luxury and
middle-income segments, and to maintain our
position as a key developer in the central business
districts of Metro Manila, Century shared.

DIFFERENTIATIO
N

Century
Properties

The company believes that as the Filipino market

continues to evolve, a greater level of significance
will be placed on the lifestyle and branding
elements of residential, commercial and even
leisure developments. As such Century focuses on
quality, service excellence and overall experience
for its projects.

Century Properties has since stirred the already

cutthroat competition in the local real estate scene
when it started to collaborate with some globally
renowned brands, introduced the concept of fullyfitted, fully furnished condominiums as well as an
enhanced version of condo amenities or what it
calls hyper amenities.
In the 1990s, LEGO had diversified into a variety of
businesses,
including
clothes,
watches,
publications, TV, learning labs and theme parks, all
while its core business of building blocks was under
attack by low-cost competitors. We had moved far,
far away from what we did well, said a company
official, absorbing vital management capacity.
The company struggled mightily, and by 2003 found
itself with a sales decline of 29% and a drop in
earnings before interest and taxes (EBIT) of 21%.

FOCUS
LEGO

In 2004, however, LEGO got a new CEO, Jrgen Vig

Knudstorp, who believed in the value of a focused
strategy. He and his team sold off most of the noncore businesses. That immediately simplified the
organization and eliminated a wide variety of
product lines. The team refocused everyones
attention on LEGO blocks, and on the children and
adult hobbyists who loved them. Now they could
introduce new product kits, negotiate new licensing
arrangements (Harry Potter, among others) and
create innovations such as LEGO Digital Designer.
Meanwhile, new systems for gathering regular,

detailed feedback from core customers ensured

that the company didnt stray too far from what
those customers most wanted.
The result of this simplification? Sales rose 22% in
2009, 37% in 2010 and 17% in 2011. In 2011, EBIT
was at 30%and the company was able to
eliminate an entire layer of management, even
though the workforce had grown by 12%.