Tuft and Needle is a low-cost bed mattress manufacturer that finds it difficult to overcome competition using an overall cost leadership strategy.

Question

Quizplus · Accepted Answer

Strategy Spotlight 8.5 highlights the success of Tuft and Needle, a growing mattress manufacturer with an overall cost leadership strategy. Whatever methods young firms use to achieve a low-cost advantage, this has always been a way that entrepreneurial firms take business away from incumbents by offering a comparable product or service at a lower price. So far, the company is having great success. Launched in 2012, Tuft and Needle surpassed 1 USD million in sales in 2013 and was expected to gross 5 million USD in sales in 2014.

Tuft and Needle Is a Low-Cost Bed Mattress Manufacturer That