The Importance Of Cost Leadership Strategy

2132 Words5 Pages
bulb-icon

Recommended: The concept of social media for business

2.5 Hypotheses development

The hypotheses development is associated with social media used in the business aspects of corporate strategy, environmental context and entrepreneurial competence.

2.5.1 Cost leadership and using social media
This research proposes that companies which emphasize cost leadership strategy are more motivated to apply social media use in business. Porter (1997) stated that if the company decides to choose a cost leadership strategy, it has to reach a lower cost of a product or a service than that of its competition, for which they tend to adopt the most advanced and efficient technologies used in business. Social media can achieve this objective. Schaupp and Belanger (2014) suggested that businesses are implementing …show more content…

Entrepreneurs use the service differentiation strategy to offer exceptional service better than other competitors, in order to obtain an improvement of customer satisfaction. Chenet et al. (2010) found that service quality had an impact on trust, differentiation and good relationship outcomes. Moreover, service differentiation has an important impact on a business in respect of service quality, trust and client commitment towards the firm. Social media can be used as a technology of business to deliver excellent service to customers. For example, social media, such as Twitter, is a channel where customers expect quick responses. As a result, businesses dedicate full-time employees to the service job of responding to customers and potential customers on Twitter. Fogg and Iizawa (2008) presented the argument that businesses use the Facebook service to persuade users to take quick action with comments. Importantly, Kandampully (2002) proposed that businesses interact with their customers and business partners using technology to provide services instantaneously across international borders. Based on the above discussion, the following hypotheses are …show more content…

These skills help entrepreneurs manage the IT systems effectively, to develop new innovations and increase the business potential. Bassellier, Reich, and Benbasat (2001) stated that the manager who has information technology competence and IT knowledge, they can use this skill to develop new IT opportunities and behave proactively in the business world. Importantly, Askool and Nakata (2011) suggested that an entrepreneur who has technology competence can adapt social media in their business. Therefore, the technology competences are very important skills for the business owners and managers to support social media applications in business activities.
Thus, these hypotheses are presented:
Hypothesis 11: Technology competence is positively associated with using social media in CRM.
Hypothesis 12: Technology competence is positively associated with using social media in Networking.

2.5.7 Using social media and cost

Show More
Related

  • Pie Face Case Study

    1013 Words  | 3 Pages

    Social media is a modern way to manage the business; this is a useful to the companies to manage the existence in the market approach to the brand and consumers. Also, using a social media they are able to get the feedbacks from customers and able to improve their business. Additionally, social media is used everywhere by everyone and people go on it a lot of times in a day. Therefore it is important for the business to fit to the changes occurring in the market frequently in order to keep the business working properly and not losing customers.

    Read More

  • Boston Scientific: Cost-Based Leadership Strategies

    249 Words  | 1 Pages

    Another recommendation for Boston Scientific is to pursue a differentiation strategy instead of a cost-based leadership strategy. The oligopolistic nature of the industry and opportunities for innovation create an ideal situation for differentiation. This strategy is also dependent upon Boston Scientific acquiring and maintaining a plethora of patents. By using these patents, Boston Scientific would be able to create a distinct, innovative product that consumers would be willing to pay a higher amount for. Consumers would be less price-sensitive if Boston Scientific’s products were unrivaled and unique. Additionally, creating a technologically superior device could lead to a sustainable competitive advantage for Boston Scientific. Due to the

    Read More

  • Limitations Of Social Media Essay

    795 Words  | 2 Pages

    Social media proves time and time again that it can be a very successful tool for helping to grow and expand a business, when used correctly. However, there are many limitations to using social media that need to be taken into consideration. One of the limitations is that companies struggle to determine how their social media platforms are generating sales and profits based on their likes and followers. The ability for a company to identify a concrete methodology to evaluate the success of their social media programs is difficult for most companies and even though who had invested time and resources into assessing this key performance indicator still understand that the methodology used is not necessarily providing them with concrete impact (Sandilands, n.d.). Due to the fact that it takes time for the likes and followers to grow and form a substantial

    Read More

  • UFC Media Strategy

    1846 Words  | 4 Pages

    Many organizations have had to change the way they operate because social media has become such a powerhouse that has to be implemented in their marketing and communication strategies.

    Read More

  • Social Media And The Pizza Industry: Taco Bell

    1703 Words  | 4 Pages

    After enforcing a new social media system, we will be able to tend to our consumer wants and needs while communicating efficiently throughout the company. Over the past couple of decades, technology has taken the world by storm. In the past, we used medias such as newspapers, magazines, and radio. Now the world has evolved and branded us with social media.

    Read More

  • Social Media Case Study Analysis

    791 Words  | 2 Pages

    Effective communication in an organization is one of the components of its success. Managers are charged with navigating communication obstacles while making every effort to harness its benefits. This onus placed on managers is compounded by organizational advancements and the application of new technologies. One relatively new organizational technology being applied is the use of social media. Social media creates communication issues yet conversely alleviates specific communication barriers by playing several roles within organizations today.

    Read More

  • Coca Cola Social Media Analysis

    1610 Words  | 4 Pages

    This paper will discuss and identify the effects of social media, and what will make social media better through research on best practices. Social media is an imperative public relations tool for companies to utilize in their business practices. Social media cannot be regulated so anyone can say what they want about the company, whether it is good, bad or ugly. Social media is developing rapidly and there are new platforms daily, making it necessary for companies to not only be familiar with those platforms, but also know how to reach the consumer through them.

    Read More

  • Marketing Usage of Social Media for Customer Engagement: A Wells Fargo Case Study

    1855 Words  | 4 Pages

    Social media is at the core of many marketing plans for corporations in the United States and world-wide. One of these companies at the forefront of social media use is Wells Fargo Bank, N.A. (Wells Fargo). The ability to directly contact customers and potential customers in a real time online environment is crucial to the bank / customer conversation and reinforcing the company’s place in a customer’s mind as the entity that they want to do business with (Wells Fargo Bank, 2014). This case study will discuss the current status of Wells Fargo’s use of social media as a means to building their customer base. Additionally, historical information on the process of the marketing move to social media will be presented and the development of the roles that are involved in this marketing strategy will be discussed. The impacts to the public sphere and society at large will play into the discourse of the social media topic and finally, the underlying theories will be discussed as they pertain to Wells Fargo and social media.

    Read More

  • Marijuana Advertising Ethics

    1075 Words  | 3 Pages

    Among the billions of social media users, there is a percentage dedicated to businesses who use social media as part of their marketing strategy. The sheer number of people who use services like Facebook and Instagram on a daily

    Read More

  • Economic Impact Of Social Media

    1741 Words  | 4 Pages

    Social media avenues are a new, upcoming, and popular way to advertise for businesses and for people to connect to each other. Alexis Ohanian once said that "Being effective at social media, whether for business or personal use, means capturing people who have short attention spans. They 're only a click away from a picture of a funny cat, so you have to make your thing more compelling than that cat. And that can be a high bar." (Ohanian) Powerful usage of social media can have a big impact.

    Read More

  • Social Media for Business Communication

    1104 Words  | 3 Pages

    Social media is pertinent in use of communication throughout today’s organizations. There are many social media platforms that allow organizations to convey communication to potential consumers, stakeholders and the public. “It is essential for leaders to integrate these technologies and seek the best way to use social media and networks to the advantage of the business” (Billington, 2012, p.1). Business owners find that keeping up with current technology trends is essential in having a competitive advantage in the market place and having a strict set of standards and strategy is important in quickly adapting to social media trends.

    Read More

  • Essay About Social Media Marketing

    1027 Words  | 3 Pages

    Since social media users grow larger and larger, many companies take the opportunities of using social media marketing to reach more customers. Companies use social media marketing in order to achieve marketing communication and branding goals. Social media allows companies to see what prospects are saying about their brands and competitors. It also allows companies to build deeper relationships with existing customers that drives them to purchase again and again. Not only it can help them generate new leads, but it allows them to build deeper relationships with existing clients that drives them to purchase again and again. It has become common for businesses to branch out and experiment with multiple networks with the aim of reaching the maximum amount of costumers.

    Read More

  • The Importance Of Social Media On Business

    1240 Words  | 3 Pages

    Started as a way for individuals to communicate and connect with one another over the internet, social media has evolved into a valuable tool for business. Social media is not only beneficial to modern businesses, but necessary. The biggest reason social media is so important to businesses is the size of the audience that they can reach. From a public relations standpoint, social media is a very powerful tool. It allows a company to instantly reach out to the public and receive feedback just as quickly.

    Read More

  • How Social Media Improved Communication?

    797 Words  | 2 Pages

    Secondly, the social media has made it easier for businesses and business people such as bankers, business owners, brands, and even celebrities to communicate faster and to get things accomplished. Through social media interaction networks such as Twitter, Instagram, What...

    Read More

  • Advantages of Using Social Media in Business

    1076 Words  | 3 Pages

    Social media is a form of online communication channels devoted to society input, intercommunication, and cooperation. In social media, people can talk and interact without restriction, exchange and debate information with each other about their lives by using many different combinations of the words, personal multimedia, photos, and videos. Also, in social media, individulsa and groups can create, edit, comment on, and engage in personal conversations. There are numerous types of social media, for example, wikis, blogs, social network site, micro blogging services, and sites sharing media. At the beginning, social media was limited to a few networks sites, for instance, Bulletin Board System that allows people to communicate with each other and post a comment. Today, social media has transformed from ineffective sites to more useful and effective websites, for example, Facebook, and MySpace. Some companies are using social media to achieve their goals which is attracting more customers to company website. Three advantages of using social media in business are: raising brand consciousness, building customer relationships, and increasing performance measurements.

    Read More

More about The Importance Of Cost Leadership Strategy

Open Document