NATIONAL INSTITUTE OF FASHION

TECHNOLOGY, GANDHINAGAR
PRESENTATION ON ACQUISITION STRATEGIES AND LOW
COST STRATEGY WITH RELAVANT CASE EXAMPLE
END TERM JURY
SUBJECT: JOINT VENTURES AND ACQUISITIONS

SUBMITTED TO:
AMISHA MAAM
SUBMITTED BY:
JAYATI SRIVASTAVA
DFT- VI

INTRODUCTION TO ACQUISITION
STATEGIES

Acquisition strategy is a strategy designed to help companies focus

on finding new prospects and converting them into customers as
well as converting long-held prospects into paying customers.
Acquisition strategy is key in sales and marketing; after all,
companies have to acquire customers before they can worry about
retaining them.
There are several processes involved in a customer acquisition
strategy:
Know how an ideal customer thinks, where they gather their
information, and their demographic information
Know how customers are influenced by their surroundings
Analyze how customers behave when buying products in a given
industry
Understand the limitations of customer knowledge
Gather information on past marketing campaigns and use it to hone
and improve future campaigns

ACQUISITION STRATEGIES
Acquisition strategy involves finding a methodology for the
acquisition of target companies that generates value for the acquirer.
The use of an acquisition strategy can keep a management team
from buying businesses for which there is no clear path to achieving
a profitable outcome. Instead of simple growth, an acquirer must
understand exactly how its acquisition strategy will generate value.
This cannot be a simplistic determination to combine two
businesses, with a generic statement that overlapping costs will be
eliminated.
The management team must have a specific value proposition that
makes it likely that each acquisition transaction will generate value
for the shareholders. Some of these value propositions (strategies)
are as follows:

ADJACENT INDUSTRY STRATEGY

An acquirer may see an opportunity to use one of its competitive
strengths to buy into an adjacent industry. This approach may work
if the competitive strength gives the company a major advantage in
the adjacent industry.

Stretch strategy has worked for high-tech titans such as Google,

Apple, and Cisco, and also for firms in more prosaic industries such
as BMW, Whirlpool

DIVERSIFICATION STRATEGY
The firms either diversify to:
To grow
To more fully utilize existing resources and capabilities.
To escape from undesirable or unattractive industry environments.
To make use of surplus cash flows.
A company may also elect to diversify away from its core business in
order to offset the risks inherent in its own industry. These risks
usually translate into highly variable cash flows which can make it
difficult to remain in business when a bout of negative cash flows
happen to coincide with a period of tight credit where loans are
difficult to obtain. For example, a business environment may fluctuate
strongly with changes in the overall economy, so a company buys into
a business having more stable sales.
Example: wills lifestyle retailing as diversified by cigarette making
company.

FULL SERVICE STRATEGY

An acquirer may have a relatively limited line of products or

services, and wants to reposition itself to be a full-service provider.
This calls for the pursuit of other businesses that can fill in the holes
in the acquirers full-service strategy.

This helps the acquirer to gain the full control of the product that it
is producing and hence helps to cut down the extra charges that was
previously paid by the acquirer.

It also helps the acquirer gain a firm position in its area of

specialization as it also helps to gain knowledge about the entire
product cycle.

GEOGRAPHIC GROWTH STRATEGY

A business may have gradually built up an excellent

business within a certain geographic area, and wants to
roll out its concept into a new region. This can be a real
problem if the companys product line requires local
support in the form of regional warehouses, field service
operations, and/or local sales representatives. Such
product lines can take a long time to roll out, since the
business must create this infrastructure as it expands.
The geographical growth strategy can be used to
accelerate growth by finding another business that has
the geographic support characteristics that the company
needs, such as a regional distributor, and rolling out the
product line through the acquired business.

INDUSTRY ROLL-UP STRATEGY

Some companies attempt an industry roll-up strategy, where they

buy up a number of smaller businesses with small market share to
achieve a consolidated business with significant market share.
While attractive in theory, this is not that easy a strategy to pursue.
In order to create any value, the acquirer needs to consolidate the
administration, product lines, and branding of the various acquirees,
which can be quite difficult.

Example:
Kraft food is an example of a rollup, in the dairy industry.

LOW COST STRATEGY

In many industries, there is one company that has rapidly built market
share through the unwavering pursuit of the low-cost strategy. This
approach involves offering a baseline or mid-range product that sells in
large volumes, and for which the company can use best production
practices to drive down the cost of manufacturing. It then uses its lowcost position to keep prices low, thereby preventing other competitors
from challenging its primary position in the market. This type of
business needs to first attain the appropriate sales volume to achieve
the lowest-cost position, which may call for a number of acquisitions.
Under this strategy, the acquirer is looking for businesses that already
have significant market share, and products that can be easily adapted
to its low-cost production strategy.
Example : Walmart

MARKET WINDOW STRATEGY

A company may see a window of opportunity opening up in the

market for a particular product or service.

It may evaluate its own ability to launch a product within the time
during which the window will be open, and conclude that it is not
capable of doing so. If so, its best option is to acquire another
company that is already positioned to take advantage of the window
with the correct products, distribution channels, facilities, and so
forth.

PRODUCT SUPPLEMENTATION
STRATEGY

An acquirer may want to supplement its product line with the

similar products of another company. This is particularly useful
when there is a hole in the acquirers product line that it can
immediately fill by making an acquisition.

SALES GROWTH STRATEGY

One of the most likely reasons why a business acquires is to achieve

greater growth than it could manufacture through internal, or
organic, growth. It is very difficult for a business to grow at more
than a modest pace through organic growth, because it must
overcome a variety of obstacles, such as bottlenecks, hiring the
right people, entering new markets, opening up new distribution
channels, and so forth. Conversely, it can massively accelerate its
rate of growth with an acquisition.

SYNERGY STRATEGY.

One of the more successful acquisition strategies is to examine

other businesses to see if there are costs that can be stripped out or
revenue advantages to be gained by combining the companies.
Ideally, the result should be greater profitability than the two
companies would normally have achieved if they had continued to
operate as separate entities. This strategy is usually focused on
similar businesses in the same market, where the acquirer has
considerable knowledge of how businesses are operated.

VERTICAL INTEGRATION STRATEGY

A company may want to have complete control over every aspect

of its supply chain, all the way through to sales to the final
customer. This control may involve buying the key suppliers of
those components that the company needs for its products, as well
as the distributors of those products and the retail locations in which
they are sold.

LOW COST STRTEGY

INTRODUCTION TO LOW COST

STRATEGIES

The low cost strategies means keeping the cost low enough so that
the company can offer an attractive price to customers relative to
competitors so that when the satisfactory volumes are reached the
company can benefit from its top position along with securing its
position. This is the low cost acquisition strategy approach.

The low cost acquisition strategy is basically a compete on the

firms productivity and its efficiency so that it gives a competitive
advantage over its rival.

WHAT SHOULD THE COMPANIES FOCUS

ON?
The companies that adopt the low cost strategy should focus on

Customer Needs
Product Differentiation
Customers choose a product based on its price and attributes
Market Segmentation
way customers can be grouped based on important differences in
their needs or preferences
In order to gain a competitive advantage Ignore differences in
customer segments .
Make a product for the typical or average customer
Recognize differences between customer groups
Make products that meet the needs of all or most customer groups

But the biggest focus of the companies following the strategy of

low cost acquisition should be to cut down the prices wherever
possible like:
Transportation
Operation
Supply chain
Raw material acquiring costs
Labour costs
Maintenance costs etc.

CUSTOMER FOCUSSED APPROACH

The companies must decide on:
Customer needs WHAT is to be satisfied
Customer groups WHO is to be satisfied
Distinctive competencies HOW customers are to be satisfied
A successful cost acquisition approach results from business level
strategies that create a competitive advantage over its rivals. These
decisions determine which strategies are formulated & implemented
to put it into action.

CRITICAL SUCCESS FACTORS

When the company follows a low cost acquisition strategy its
critical success factor relies on three important pillar. They are:
Efficiency
Productivity and
Minimizing waste

These types of companies are often large and try to take advantage
of the economies of scale in production and distribution.
In many cases the large size allows to sell their products and
services at lower price which leads to :
Higher market shares
Volume and
profits

However, even a low cost leader must offer a product or service that
customers find valuable.
As Gordon Bethune, the CEO of Continental Airlines put it, You
can make a pizza so cheap that no one will buy it.
Ultimately organizations should use cost strategy to increase value
to customers rather than to take it away.

LINKS WITH HUMAN RESOURCE

A low cost strategy also has several links to HR planning.

The first has to do with productivity. A common misconception of

low cost strategy is that they inevitably require cutting of labour
costs. On the contrary there are several good examples of
companies that pay their employees top dollar but gain back cost
advantages because of excellent productivity.

Either they produce more from the workforce they have or they
produce same with smaller workforce.

Example:
Billy beane, the general manager of the Oakland As became famous
for making most of the As small payroll. He did so by developing
players and utilising them more strategically than other major league
teams with bigger payroll budgets.

The second way to low cost strategies are linked to HR pertains to

outsourcing. In some cases companies seeking low cost may
consider contracting with external partners that can perform
particular service as well at a lower cost. This strategy directly links
strategic planning to human resources.

MAIN PILLAR OF IMPLEMENTATION OF

LOW COST ACQUISITION STRATEGY

But the main punch in order to follow this strategy is that the
organizations need to have a clear understanding of their core
processes and skills in order to make this decision. Too often the
firms approach this decision based on the cost alone which can be
detrimental in the long run if the skill base of the employees suffer
and its core capabilities are subsequently eroded.

ADVANTAGES

Protected from industry competitors by cost advantage

Less affected by increased prices of inputs if there are powerful
suppliers
Less affected by a fall in price of inputs if there are powerful buyers
Purchases in large quantities increase bargaining power over
suppliers
Ability to reduce price to compete with substitute products
Low costs and prices are a barrier to entry
Cost leader is able to charge a lower price or is able to achieve
superior profitability than its competitors at the same price.

DISADVANTAGES
Competitors may lower their cost structures.
Competitors may imitate the cost leaders methods.
Cost reductions may affect demand.
It might not be beneficial for employees as their benefits might be
cut down
It can also effect the suppliers as there will be an increased pressure
from above to reduce the prices.

EXAMPLES OF COMPANIES THAT

FOLLOW LOW COST ACQUISITION
STRATEGIES

Walmart
Southwest airlines
Dell
Indigo airlines
Amul

LOW COST STRATEGY

EXAMPLE

WALLMART

WALMART

WalMart 's ability to provide

customers with "everyday low
prices" and its presence as an
economic and political force of
gigantic size and influence, is the
result of a process that was built
on some core principles and
procedures
of
low
cost
acquisition strategies.

FACTS ABOUT WALMART

Walmart operates over 10,000 retail units under scores of banners in
an increasing number of countries, and has e-commerce websites in
several more.
It employs millions of associates around the world, with over a
million of these residing in the U.S.
It reportedly grossed 476 billion dollars in the fiscal year ending
January 2014 and in the 2015 fiscal year, Walmart made a profit of
$16 billion.
The company is 2% of the United States economy, all by itself.

FOUNDATION PHILOSOPHY AND FIRST

MOVES

Walmart's standing can be attributed to the way it started -- the

approach taken by its founder Sam Walton, who opened his first
five-and-dime store in 1950 with a business model that was focused
on keeping prices as low as possible.

That strategy of offering low prices hinged on another key

cornerstone on which so much of Walmart's advantage is built:
scale/volume.

Walton was aware that even if his margins were slimmer than his
competitors, he could make up for that through the volume of his
sales. In time that volume would permit economies of scale, and a
level of bargaining power that would enable Walmart to remake the
supply sector and the retail landscape, to suit its own schemes.

The third principle on which Walton based his operation is the

minimization of operating costs.

Though, this model built on low prices, on a large scale, at

minimal cost was never changed, but instead gained momentum,
building on each success, resulting in an ever-wider spread of
operations and constantly increasing leverage for this retail entity,
which would in turn use the power gained to acquire even more
clout and to provide even lower prices, at an even larger scale, at
even less cost to itself.

WALMART'S MODERN OPERATIONS

Walmart today still works on its low cost acquisition strategy and is
need of no other strategy to expand as it is the sole giant at the apex
creating a barrier for other competitor.

Walmart continues to offer very low prices, and this is possible due
to strict adherence to the policy of low cost acquisition:

(1) its huge volume of sales that's possible due to the spread of its
operation and its wide customer base,
(2) a supply chain management system that maximizes efficiencies
and reduces outlays,
(3) minimization of overhead and operational costs, and
(4) leveraging of its bargaining power to force suppliers to lower
prices

SALES VOLUME, SCOPE OF OPERATION

AND WIDE CUSTOMER BASE

Walmart has been able to capture a huge market share by selling

almost everything, and being almost everywhere. It has endeavored
to meet the demand of various segments of the market, and to
present a huge swath of buying opportunities, compressed into
single locations.

It actually has a multiple-store format that extends its market reach,

and it sells goods through four types of stores:
discount stores
Walmart Supercenters
Sam's Club warehouses (which sell bulk items)
and neighborhood markets.

90% of Americans live within 15 miles of a Walmart store. There is

an omnipresence to the WalMart store that allows it to increase its
penetration in customers' lives and increase the probability of a
purchase.

Its large volume of sales enables it to make substantial profits, even

in instances where individual margins on single items may be
slimmer than those of its competitors.

All these strategies are a part of the low cost strategies as discussed
earlier.

SUPPLY CHAIN MANAGEMENT,

VENDOR ROLE IN DISTRIBUTION AND
LAYOUT OF WAREHOUSES

Walmart has a supply chain system that is regarded in multiple

quarters as one of the most technologically advanced and efficient.

The goal, according to the strategy was the art of knowing what it
needed, how much was needed, and when it needed it.

a vendor-managed inventory system, a smoother flow of inventory,

with less irregularities, and helped ensure that products requested
by customers have always been available on the shelves. All of this
has resulted in a more cost-effective process, with these savings
being translated as well into lower prices in the Walmart stores.

REDUCTION OF TRANSPORTATION
COSTS AND INVENTORY COST

Also key to the cost-effectiveness of Walmart's supply chain

strategy and distribution network is the positioning of its nearly 160
distribution centers, which cover almost 120 million square feet and
are all within 130 miles of the stores they supply. (Regional
distribution centers have been placed at locations that offer lower
labor and transportation costs.)

They have thus been able to carry out cross-docking at their

warehouses, a process in which products are taken from a truck
upon its arrival and packed in a truck headed to a store without
spending time in the warehouse. This in turn has resulted in reduced
costs for inventory storage and has lowered transportation costs.

BACKWARD EXPANSION STRATEGY

What amplifies the effectiveness of all of this is that in its early years
Walmart followed a backward expansion strategy, opening stores in
small, rural towns first before entering metropolitan areas. This resulted
in lower operating expenses, and ensured that all stores' locations were
within just over a hundred miles of their distribution centers. It became
cost-prohibitive for competitors which had focused on large towns to
enter regions Walmart had already saturated later on. This constituted a
barrier to entry.

Walmart also uses its own trucking fleet and drivers, who are required to
have three years and 250,000 miles of driving experience. The impact of
all these supply chain mechanisms on Walmart's bottom line and its
ability to offer lower prices is pronounced. By 1989, its distribution
costs were 1.7% of its sales, or less than half of Kmart's costs.

MINIMIZATION OF OVERHEAD AND

OPERATIONAL COSTS
Continuing the model for a low-cost operation, Walmart still keeps its
overhead low:

Its executives reportedly fly coach and share hotel rooms with
colleagues.
Its meager wages and low-benefit healthcare plans which are offered to
rank-and-file employees have been publicized and protested against.
The company has even been accused of demanding that hourly
workers put in overtime without pay. Researchers at some policy
institutes have speculated that each Walmart associate does the job of
1.5 to 1.75 employees of a rival. It has also been said that Walmart
staff are expected to keep costs at a minimum, even for heating and
cooling of the buildings.

LEVERAGING OF ITS BARGAINING

POWER TO FORCE SUPPLIERS TO
LOWER PRICES:

Many well-known companies rely on Walmart for more than 20%

of their revenue. Walmart, as the number one supplier-retailer of
most of our consumer goods, wields considerable power over their
bottom line and in fact wields this power over almost all the
consumer goods industries in the U.S.

In adhering to a strategy of keeping prices low (experts estimate

that Walmart saves shoppers at least 15% on a typical cart of
groceries), Walmart is constantly pushing its suppliers to cut prices.

For example:
the price of a four-pack of light bulbs decreased from $2.19 to 88 cents
during a 5-year period.
The pressure on suppliers to lower prices has resulted in layoffs at certain
factories, changes in manufacturing inputs and processes, and even the
transfer of manufacturing processes to foreign countries like China where
labor is cheap.
A clear example of the results of the application of such pressure is
Lakewood Engineering & Manufacturing Company, a fan manufacturer in
Chicago. In the early 1990s the cost of a 20-inch fan was $20. After Walmart
pushed for the lowering of the price, Lakewood automated its production
process, which resulted in the layoff of workers. It also put pressure on its
own suppliers to slash the prices of parts, and it opened a factory in China
where workers earned 25 cents an hour. By 2003, the price of a fan in
Walmart had dropped to $10.

WAL-MART'S BIGGEST LIABILITY:

LABOR COSTS
What Walmart can control though, is its labor force. Currently, Walmart is the
third largest employer in the world after the United States and Chinese
Armies. There are certain ways by which it can reduce labor costs:

Walmart has 1.4 million American workers. What Walmart doesnt have is
mass-automation.

It can use robots in the distribution centers to pick orders like Amazon.

It can replace cashiers with self service chekouts.

Employees will be happier with their increased competition and

their jobs will be easier as they supervise a bank of self-serve
check-outs, rather than have to serve customers themselves.

Self-serve has been implemented in every industry because of its

incredible savings power.

Walmart needs to follow suit.

RISKS FACED BY WALMART

Though walmart is at the pinnacle of success but there are several

risks faced by it:

Geopolitical:
- A break in shipping routes could destroy its logistics chains,
causing product unavailability

- Backlash internationally, as well as locally in US (NYC for

example), in not allowing Wal-Mart set up new locations

- Corruption scandals

Revenues:
- Unable to recognize consumers' shifts in taste, resulting a similar
low-cost competitor to take over

- An boom in the economy may cause a general shift away from

buying at Wal-Mart in general
Rise of e-commerce and Amazon
-Unable to adapt to local tastes when it expands internationally

Costs:
- New laws in emerging countries (where its factories are located)
requiring large wage increases than it can raises prices elsewhere
could diminish its margins
- Various kinds of lawsuits hurting its brand image
- Unable to contract suppliers who are willing to produce bulk
products at reduced margins
- Exchange rates, oil prices, cotton prices
- High money, time, & engineering costs related to building new
technologies, processes, etc (some of which are risky)
Dissatisfied employees as though the pay per hour is high but the
compensation is taken by cutting health fringes and discounts for
employees

BOTTOM LINE

Walmart's image in the public eye has been tarnished lately, and
have surely impacted some consumers' purchasing choices, but the
question is whether consumers' quest for a product that is backed by
a conscientious process overrides their desire for good prices.

It could be said that consumers with more disposable income are

more inclined to make purchasing choices that reflect social
responsibility. For other consumers, though, being able to stretch a
small paycheck is the goal, and in such instances, Walmart's lowpricing strategy wins.

INDIGO AIRLINES

INDIGO AIRLINES

IndiGo is a low-cost airline

headquartered at Gurgaon, India.
It is the largest airline in India in
terms of passengers carried with a
36.8% market share as of February
2016. The airline operates 679
daily flights to 40 destinations and
is the second largest low-cost
carrier in Asia. It has its primary
hub at Indira Gandhi International
Airport, Delhi.

IndiGo has managed to remain the market leader and a profitable

one at that due to a consistent strategy. The pillars of this strategy
include consistent low fares, young and trouble free fleet, consistent
on-time performance, no offers of lounges, frequent flyer miles or
other full service airline trappings, using a single type of aircraft
and making sure aircraft usage is at its maximum and hence it also
follows the acquisition strategy involving low cost.

The oldest low-cost airline in the world, Southwest, commenced

operations in 1971 which later was followed by many airlines
around the world including indigo airlines.

INDIGOS COST STRATEGIES

Since Indigo also follows the strategy of low cost there are certain
cost cutting strategies that are helpful in this approach.
Operations:
Single type of aircraft: Indigo's whole fleet consists of A-320-232
aircraft while Air India, Jet Airways and Spice Jet use 10, 9 and 3
different makes of aircraft respectively. This results is in greater
flexibility by making use of the same crew from pilots to flight
attendants to the ground force thereby cutting hiring, training and
up gradation costs.
Single Class:
Having only Economy class means that Indigo does not have to
spend time, money and crew on privilege passengers. They also
don't need to maintain expensive lounges at airports further
reducing costs.

Low average fleet age:

Indigo has an average fleet age of less than 3 years. A younger fleet
means less maintenance costs. Indigo plans to maintain a lower fleet
age as all its aircraft are leased for a period of 5-6 years. This way
they avoid the D-Check which is done after 8 years of operation of
an airplane. (A D-check may take up to 2 months during which the
aircraft remains out of service.)

Fuel:
Domestic fuel taxes can be as high as 30 per cent along with an 8.2
per cent excise duty. As a result, fuel for Indian airlines accounts for
about 45 per cent of total operating costs, compared to the global
average of 30 per cent.

Indigo's aircraft try to save fuel by using software to optimize flight

planning for minimum fuel burning routes and altitudes and also by
making use of latest fuel saving technology.

Tightly framed maintenance contracts:

Indigo has a Power by the Hour contract with International Aero
Engines (IAE), which provides the engines, that put the bonus of
performance delivery on the manufacturer. IndiGo has similar
agreements with Airbus, as well as with the vendors for other
critical components. These contracts probably come at a premium
but it means that Indigo does not have to pull out planes from
service for repairs and also does not have to maintain a large
inventory of spares.

Employee Aircraft ratio

Lower employee aircraft ratio of 102 compared to Jet Airways's 130
and Air India's 262.
Most Indian airlines take delivery of aircraft by sending their own
pilots and engineers (to Toulouse in the case of Airbus). Indigo prefers
to get them delivered to Delhi, this is costlier but it also leads to better
utilization of the available pilots and the engineering crew.

Little advertising spend.

The large aircraft orders, phasing out of aircraft older than 6 years and
Indigo's highly connected flight network to which a new destination is
not added unless it can be connected to at least 2 other destinations
point to a highly planned long term growth trajectory.

BENEFITS FOR INDIGO DUE TO LOW

ACQUISITION COST STRATEGY

Daily aircraft utilisation is 11.4 hours as December 2015.

IndiGo has over 38 percent share in domestic market and faces no

immediate threat from rivals.

Operational reliability was 99.95% in FY15 which means relatively

very little maintenance trouble with Indigo's fleet.

IndiGo has the lowest CASK (cost per available seat kilometer)
excluding fuel cost of 2.87 cents among the Indian carriers.

IndiGos CASK excluding fuel cost reduces further to 2.51 cents on

the exclusion of maintenance reserves. Air India's close to two-anda-half times those of IndiGo.

As of December 2014, IndiGo had more passenger flights in India

than any other airline, averaging 515 flights a day.

IndiGo's single fleet no frills model gives it an advantage over its

rivals. IndiGo's operations are far less complex than Jet Airways

The airline recorded a profit of Rs 720 crore in nine months ending

December 2014.

indiGo has fleet of 96 Airbus A320 aircraft and has another 180
planes on order. By end of March 2018 the airline plans to have a
fleet of 137 Airbus A320 planes allowing it to maintain leadership.

RISKS FACED BY INDIGO AIRLINES

Full fledged carriers with low cost subsidiaries like other carriers
IndiGo too is facing risks from growth in capacity as it puts
pressure on ticket prices.
While IndiGo has so far been successful in keeping its costs in
control, the challenge for the airline will be to manage growth as it
expands over the next few years.
But launch of the new airlines is causing fragmentation of
passenger traffic and poses further risks to pricing powers of
airlines.
IndiGo's route development and network strategy requires a careful
think. As the domestic market saturates, IndiGo will be forced to
take up more international routes, where, arguably, they have had
limited success compared to the domestic market

BOTTOM LINE

It will have to maintain and enhance reliability, schedule integrity ,

operational excellence and service delivery . More important it will
have to retain the strong performance culture and people
orientation.

Though the indigo is at the apex position today but it has to solidify
it to prevent any competition in the coming years with the better
low cost strategies combined with other approaches.

CONCLUSION

To conclude after studying about the various acquisition strategies

with focus on low cost strategy, it helped in understanding how the
low cost strategies when applied to the companies can make then
soar high and become a pioneer in their respective field. The
example of the Walmart in retail sector and Indigo Airlines in the
aviation sector helped in the better understanding of the application
of this strategy in the real examples.

However, this approach might not work for all the companies it
requires a lot of time and investment to settle in the business and
then apply this strategy when enough volumes have been produced
to gain a sole control of the specialized market like Walmart and
Indigo Airlines.

REFERENCES
Books:
Competitive strategy and leadership- a guide to superior
performance
-By William G. Forgang

Managing human resources

-By George W. Bohlander, Scott Snell

Mergers and Acquisitions: Creating Integrative Knowledge

-edited by Amy L. Pablo, Mansour Javidan

INTERNET:

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rt-model-wins-everyday-low-prices.asp
https://
www.quora.com/How-is-Indigo-different-from-other-airlines-and-how
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http://www.ch-aviation.com/blog/2013/07/10/low-cost-carriers-elimin
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