Maple twice the average labor time input

Maple Leaf
Shoes limited utilizes the cost leadership strategy to give them a competitive
edge. In cost leadership, an organization sets on becoming
the industry leader in low cost production. The sources of cost advantage are diverse
and depend on the structure of the industry. A low cost producer must find ways
to exploit all sources of raw materials to their advantage. These organizations
will embrace the pursuit of economies of scale, control a certain amount of the
flow of raw materials, and have access to exclusive technology. If a company can
accomplish and sustain overall cost leadership, it can catapult them as an
industry leader, provided it can command prices based on the industry average.

This strategy involves minimizing the costs in order to pass the savings
towards your customers.

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In the initial stages
of the start up of the company, Mansini was able to take advantage of the
reliability and the intimacy of his friends into enabling their lost cost on
products. The fact that Mansini’s friends practically worked for no money
helped Maple leaf shoes limited to being a leader in the country in terms of
price. Another factor that helped in the company implementing the cost
leadership strategy was that Mansini was very involved in the day-to-day
activities. Mansini often worked 15 to 18 hours a day, which is twice the
average labor time input of the daily worker in Canada. Aside from that,
Mansini was involved in most decisions including hiring of personnel, product
planning, financing strategy, designing the shoe and handling any employee
grievances which drastically cut down on the manpower needed such as managers,
human resources workers and any other supporting personal that other companies
need. 

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