Example of a low cost strategy in ecommerce

In my strategy class we have talked about there only being room for one successful low-cost strategy company in each industry. Boxed could be an example. They only sell around 600 necessities (e.g. diapers, toilet paper), but in larger packs compared to Amazon. The company claims that if customers buy in larger quantity, prices can be up to 20% lower than Amazon. To accomplish such low prices the company needs to be very cost focused. For instance: they only have an iphone/android application, no website, they only deliver to a few US states that are densely populated.

HTC shifted from a unique strategy to a copy-cat strategy, guess what happened?

There are strong forces towards conformity in society; for instance individuals dress in similar fashion and eat similar food. Human beings are social animals and it is easier for us to belong if we conform. I am not denying the existence of non-conformity, just stating that there are forces towards conformity in society.

A similar force towards conformity can be found among companies strategies. Academics use the fancy word isomorphism to describe the situation. Isomorphism can be created by CEOs having similar background, CEOs copying seemingly successful companies, CEOs' compensation contract, government regulation, and a number of other factors. This note will illustrate the disastrous effect of isomorphism on HTC, a company producing mobile phones.

Book review: "The Circle"

David Eggers have written a fascinating book about the future of work and social life. The book is a futuristic novel, but it could equally well be considered a business book. I will not be surprised if The Financial Times will short-list this book for its annual business book award.