The CK&M Company manufactures a robotic vacuum called the Robo2000

Full Answer Section

    Stone Manufacturing's strategy is product differentiation. This is because their robotic vacuum is more advanced than the Robo2000 and requires a smartphone and app. Stone's model also has an excellent reputation for quality. By offering a more differentiated product, Stone Manufacturing can charge a higher price than CK&M. Here is a table summarizing the strategies of CK&M and Stone Manufacturing:

Company	Strategy
CK&M	Cost leadership
Stone Manufacturing	Product differentiation

drive_spreadsheetExport to Sheets The two strategies are complementary, meaning that they appeal to different types of customers. CK&M's strategy appeals to price-conscious customers, while Stone Manufacturing's strategy appeals to customers who are willing to pay more for a more advanced and differentiated product. CK&M could improve their cost leadership strategy by:

• Investing in new technology to reduce production costs.
• Improving their quality control processes to reduce rework costs.
• Negotiating better prices with suppliers.
• Distributing the Robo2000 through a wider range of channels, such as online retailers.

Stone Manufacturing could improve their product differentiation strategy by:

• Developing even more advanced features for their robotic vacuum.
• Offering a wider range of colors and styles.
• Providing better customer service.
• Investing in marketing and advertising to raise awareness of their brand.

The choice of which strategy is best for a company depends on a number of factors, such as the target market, the competitive landscape, and the company's resources. In the case of CK&M and Stone Manufacturing, both companies are likely to be successful, as they are both targeting different segments of the market.

Sample Solution

    CK&M's current strategy is cost leadership. This is because the Robo2000 is significantly less expensive than the robotic vacuum offered by Stone Manufacturing. CK&M is selling the Robo2000 to discount stores, which indicates that they are targeting price-conscious customers. The fact that CK&M has experienced production problems that have resulted in significant rework costs also supports the idea that they are focused on cost leadership. By cutting costs, CK&M can offer the Robo2000 at a lower price than their competitors, which will give them a competitive advantage.