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Your new product was performing wonderfully until a foreign competitor that is subsidized by their government produced the same product or service at a lower cost. You are convinced that with the right modifications, you can produce an even less expensive product, but this will mean there must be increased efficiencies of your current operation. Your corporation's research and development department does not like to consider cutting costs as part of its job, but this has to now change. This new competition is formidable because the government of this foreign competitor is giving it a subsidy, which cuts its costs by 20%, or 10% less than your own production costs.
How will you sell the idea that your organization must now take a cost leadership strategy to recapture the world market you worked so hard (up to this point) to take command of with your product or service?
What specific plans would you implement to accomplish this goal?
What will probably be the strongest objection from your research and development department?
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