Big Lots Part 3: Strategic Evaluation and Recommendation
Barbara "BeBe" Smith
STR/581 Strategic Planning and Implementation
April 23, 2019
Dr. Patrick Oldenburgh Jr., Sphr
Running head: BIG LOTS PART 3: STRATEGIC EVALUATION AND
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BIG LOTS PART 3: STRATEGIC EVALUATION AND
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Big Lots Part 3: Strategic Evaluation and Recommendation
Strategic planning entails many intricate facets. One of these complicated facets includes the business level strategy. There are various types of business level strategies. Therefore, it is extremely important to have a comprehensive knowledge of these business level strategies. While there are several levels, Big Lots has integrated both the cost leadership and differentiation strategy. When an organization implement the cost leadership strategy, it is pursuing an avenue to surpass their competitors as with a differential.
Business Level Strategies of Big Lots
Big Lots applies two types of business level strategies, both cost and differential. While providing low-cost to its customers along with differentiating itself from other competitors in the discount retailer industry.
Big Lots Cost Leadership Business Level Strategy
Big Lots assimilate cost leadership to entice the consumers to enter their stores to purchase their quality name brand product(s) at a more attractable discounted price than its competitors in the industry. Big Lots vision, would like to be known as “The World’s Best Bargain Place.” (Hitt, Ireland, & Hiskisson, 2007). Big Lots also operates subsidiaries under its umbrella: Big Lots Furniture, Wisconsin Toy, Big Lots Capital, Big Lots Wholesale, and Consolidated International (Hitt, Ireland, & Hiskisson, 2007). These subsidiaries assist Big Lots to keep prices lower than the competitors in the discount retailer’s realm. Furthermore, Big Lots buyers navigate throughout the United States to unearth and obtain manfactures closeouts items along with their over productions at the same time selling its customers the best discounted price possible (Hitt, Ireland, & Hiskisson, 2007).
Big Lots has positioned itself as a low-cost discount retailer with name brand quality items to offer the consumers. Cost leadership level strategy for Big Lots is a defense mechanism against both old and new rivals within the discount retailer realm. While Big Lots concentrate on low-cost leadership, competitors may vacillate to compete with lower prices. Furthermore, Big Lots low-cost level strategy makes it difficult for their competitor to compete on its level.
Purchasing a variety name brand items at a tremendous price allows Big Lots to amass strong customers and suppliers bargaining power. While possessing bargaining power of both customers and suppliers, Big Lots must constantly monitor the low-cost level strategy to ensure its efficiency while improving wherever is necessary.
Big Lots Differential Business Level Strategy
The Big Lots organization also assimilates the differential level strategy via offer...
