Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 2

Strategy; Execution Joel Deaine, CEO of Deaine Enterprises, Inc. (DEI), is considering a special offer to manufacture a new line of women's clothing for a large department store chain. DEI has specialized in designer women's clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, DEI has not sold clothing to the large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to DEI ,and the order would be renewed automatically for two more years, presumably to continue after that point.
Required
1. Determine Joel's competitive strategy (cost leadership or differentiation) and use this strategy to analyze the choice Joel faces.
2. Explain two means Joel can use to implement his strategy.