Analyse The Competitiveness Of Operation Management

Published Date: 02 Nov 2017

The operation management is one of the key success factor which involving transformation of the material to provide products and services as a business activity. The purpose of this report is to describe and evaluate the critical issues in the operation process of Twinings UK and how it contribute to the organization´s competitiveness and strategic direction.

Firstly, the report starts with a briefly introduction describing the company. Task 1 focused on explaining the benefits of using the suitable operation management system and possible gain of Twinings by apply some recommended system. Task 1 also shows the limitation of implementing new OM for the company to consider.

Task 2 explains Twinings Information system(I.S) focused in the interaction with the customer by Customer Relationship (CRM) and Knowledge Management (KM) value chain.

In task 3 there are some emerging technologies that are critical for Twinings to gain and develop the competitive advantage. Those technologies also contributed to the motivation of the company. However, it shows that there are some limitation to application of those methods.

Introduction

Twinings Tea is the famous tea manufacture in the UK. Since 1964 the brand is owned by Associated British Food which is a diversified international food, ingredients and retail group with revenues of £12.3BN and has 106,000 employess in 47 countries.(ABF2012)

The essay focus on Twinings UK and Ireland branch considered as the medium sized manufacture company(Greatplacetowork2012). Twinings sells both loose tea and teabag tea, and black teas as well as the infusion of herbal teas and a other varieties of tea.

Their main objective is to be number 1 tea maker for working class. Their mission is to provide healthy and taste diversify product development.

The core competence of the company is maintaining of strong confidence and satisfaction of customers through value for money. In addition, the company specialized in product quality, aroma and taste.

TASK 1: Operation Management

Operation Management is about the effective process management which transform material through production into goods and services (Greasley 2009) In other words, it is the process of transforming raw material into goods and delivering to customer.

The OM can be summarized as 3 basic functions of business Product development, marketing and operations. The Operations function is the part of the organization that is in charge of transformation process which including the consideration of performance objectives, setting an operations strategy, designing it, planning and controlling the operation(Slack 2010) In order to success business need to focus not only about the final product or service, but also looks for the customers´ satisfaction to maintain a long term relationship.

Operation in organisation

Using appropriate and suitable operations management can significantly contribute to the success of business. With existing available resources, the system can effectively produce products and services in a way that satisfies customers.

The OM function is the core functions which operate to satisfy customers’ demand and it function of providing goods and services is essential to the business existence. However, OM has to be supported by Marketing, Sales and Product and Services development functions.

The marketing function is about communicating with customers in order to bring them the ideas of company products and services. The Product and Services development function is about innovation and improvement of products and services.

There are other functions to support the operation such as Human resources, Information systems and technical function and Accounting and Finance function.

Current operation at Twinings

Figure 1 explains the use of resources for Twinings while interact with customers and transforming the information, knowledge and experience into producing and providing products and services. Internally, the interaction of core and support functions of Twinings must follow the goal congruence defined while flexibly obtain opportunity to fulfill its market needs and requirements in order to gain competitive advantages.

Figure 1

 

 

 

 

 

 

Twinings customers' demand from CRM

to

Effectively

 

Produce / Sell / Distribute

 

Products Online/ B2B/Tea House

 

 

 

 

 

 

 

 

 

 

 

 

that

 

 

 

 

 

 

Needs and requirements

 

Everyday tea customers

 

Defined Potential

 

Contributed to Satisfy

Nowadays there are over 60 countries in the world cultivate tea [1] (Griffiths 2007), the competition in the market has been more and more intense(ABF2012). It can be seen that Twinings is facing several issues regarding four key characteristic: Quality, Cost, Dependability and Flexibility.

First of all is the issues of effective quality management consist of product quality and services quality. The product quality can be difficult to monitor and control since there are high speed production line. Besides, the services need to provide information to customer and shows them the value provided by Twinings.

In recent year, most people consider drinking it occasionally since the price of Twinings tea is higher than normal brand leads to a shortage in market share (marketing society2012). The issues has been raised for Twinings that how they can achieve the target market with their focus on high quality products and services which come from excellent raw material, highly skilled worker and strong management. However, medium sized company cannot pass on the cost to customer. (Soble2007)

Customers require not only good quality products but also consistency and dependable customer services. Since Twinings guarantee for high quality products, the dependable services will be expected highly from consumers. It become the issues in which they have to develop for customer satisfaction.(Blackwell 2001)

In the emerging market, firm with fast response to customer demands has the competitive advantage. In these days, the company with high flexibility can adapt with the environment. To improve sales and the services providing Twinings need to have flexible OM to respond quickly.

In addition, in order to achieve objectives, employees motivation play an important role. The employee can help organisation to improve its quality services and products.Furthermore, staff motivation is also the key to success of any organisation. In order to improve quality of the services it is necessary to motivate workers. The recent incident of Twinings closed off the factory in Hampshire(BBC 2009) which leads to huge redundancy in 2011. It creates the negative effect on the staff.

Customer acknowledgment is also an issue. Since customers only consider Twinings tea for occasional while Twinings want people to know it as the everyday tea of high quality which customer deserved.

Besides, Ethical issue is one of the major issue Twinings has to face. Twinings is a member of the Ethical Tea Partnership(2011), has created their own Ethical Code of Conduct(Twinings2011) and has close relationship with suppliers to ensure good working conditions in the supply chain(ABF2012). However, there are number of ethical and environmental issues including low ranking of Twinings at ECRA rating because of environmental reporting and palm oil use. Also Twinings receives bad feedback on the Ethical Consumer magazine in 2013.

Any organisation cannot be best at all dimension, therefore, Twinings focus on choices (flexibility), quality, dependability of products and services which satisfy customers' need.

Possible gain from good operation management

In order to deal with those issues, Twinings can implement new effective operation system. The possible benefits can be reducing the costs of producing products and services and being efficient by cutting down unnecessary process. Also, it can help increasing revenue by increasing customer satisfaction through good quality and service. For example, TQM which manage to lowering the defect and guarantee high standard production(Amy 2008). Besides, good OM can reduce the amount of investment that is necessary to produce the required type and quantity of products and services by increasing the effective capacity of the operation. Last but not least, OM provide the basis for future innovation by building a solid base of operations skills and knowledge within the business.

Operation Strategy

"Operations are the resources that create products and services, while Operational is the opposite of the strategy because is related with the day to day routine activities"Error: Reference source not found.

Operations management system usually include in principles of operation strategy, product and services design, production control, human resources, innovation and improvement, supply chain and quality management and so on. There are five key operations performance objectives which important to operation management: Quality, Speed, Dependability, Flexibility and Costs. [2] 

The Operation strategy of Twinings needs to consider three crucial strategic decisions and convert them into objectives such as product development, control process and quality management.

Product development process of Twinings

Quality

Twinings main aims for developing new product or services is quality, it is important to the company to create reliable improvement. The reason is Twinings using differentiate strategy to gain competitive advantage, therefore, the new product and services need to satisfy customers' expectation.

In order to do so, they need to build close relationship with customers as well as suppliers. From then on, they can develop new products and services based on the customers' demand and available resources from suppliers and capacity of the production lines.

Speed

Twinings has 14% of the market shares in teas industry. It is important to develop better products and services quickly in order to adapt with the market. However, since tea market is less dynamics therefore, the speed of development is less important than other factors.

Cost

In order to develop and improve products and services, firm need to invest in several part to satisfy customers. Even though, Twinings use the differentiate strategy to differ their products from others the cost of producing as well as providing high quality service will cause problem to the sales since there are several competitors in the market.

In 2009, Twinings closed one factory in Hampshire, upgrade remaining UK factories and open Poland and China where the cost of production is lower.(BBC2009). Reducing cost of manufacturing and operation will increase company resources for developing better services.

Planning and Control

Twinings focus on the transformation process from raw material to the packaging output provide to customers. The aim of Twinings is high quality teas which customers deserve for everyday therefore, their planning and control play a key role to contribute to their success. The diagram represent the transformation process from material, information and customers(Slack 2010)

It´s necessary to understand that main objective of Twinings is to satisfy the requirement of its market or industry.In the planning and control process, there are 4 key characteristics which need to be emphasized. (Slack 2010)

Volume which involving the demand and supply of the products. It related to how much should the company produce, cost of the production, optimum level of input and output to reduce cost. Not only the cost, volume also related to the quality because Twinings can choose to use more resources for higher quality products or use less for standard products.

Variety involving the types of products such as loose teas, tea bags, fruit flavor and so on. The company need to understand the type of products, flexibility of production line and the standardize process. The variety shows the flexibility of products since the trend of drinking tea may change. In modern life, tea bags is more popular since it save time and money for customers.

Variation involving the variation of the same products. For example, people drink tea everyday will buy large package with cheaper price while occasionally drinker buy smaller package. It also shows the flexibility of Twinings for customers choices. By giving more choice, peoples' need can be satisfied.

Visibility related to how the product is presented to the customers, should it be internet marketing, TV advertising or magazine. The company using the internet for visibility has the effect of reducing cost of advertising as well as improve the appearance of the brand.(Twinings casestudy 2012)

Besides, the control process also focus on the supporting function such as employee motivation, health and safety concern and the flexibility of the infrastructure.

Supply Chain and Quality Management

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer.

Twinings is committed to sustainable sourcing. The company sources from thousands of suppliers, ranging from small-scale farmers to large organisations. Many products are agriculturally based and several are sourced from developing countries.

The business’s approach to sustainable sourcing has five strands: membership of the Ethical Tea Partnership (ETP); supporting suppliers with training to improve standards; collaborating with certifying schemes. The business works with Rainforest Alliance and Fairtrade on different parts of its portfolio; the Twinings Ovaltine Code of Conduct, a social standard that suppliers are expected to meet over time; and philanthropic projects, including a partnership with Save the Children to support the needs of tea communities of China (ABF 2012).

Supply Chain Management (SCM) facilitates the communication with suppliers by having an effective interaction like Zara strengthen their interact with alliance and franchise.(Fashion.net2008) For Twinings it also involves an internal flow of information as well as products between the warehouse resource planning and externally for the final consumer satisfaction of demand fulfillment.

Applying the TQM to the quality management, Twinings can focus on the quality of their products and designs to meet customer expectations and built a long relationship with them. This concept is extended to suppliers by inspiring a continuous quality improvement. Also, Twinings can motivate their employees a by having a great communication, commitment, ability to correct errors and develop a strong organizational culture which are the key factors of the TQMError: Reference source not found

Potential Limitation

However, there are a limitation of implement OM for the company. Firstly, the system require adequate skills and knowledge to operate, therefore, Twinings need to invest heavily on the restructure, marketing development as well as training. It creates the shortage in cashflow of Twinings(ABF 2012)

Moreover, the new OM can be difficult to use since it new to the culture of Twinings. It may take long time for the employees to adapt with the new operation. The most resistance force (Lewin 1948) of change is the organisation culture which has been built since Twinings has history of 300 years(ABF 2012).

Last but not least, switching cost is high therefore, if the new system is formed, it will be difficult to revert. For example, Barclay has fallen in profit by 25% after the restructure of improving bank culture (standard.co.uk 2013)

Therefore, the company need to make decision carefully based on the current situation as well as the potential of the company after implementing the OM framework

TASK 2: Information system

Information system (I.S) is a system which has functions of collecting, retrieving, storing and interacting with information from external environment to internal operations in order to support decision making, control, communication, coordination, analysis and visualization processes. Error: Reference source not found.

"From a business perspective an Information System is the one that provides a solution to an enterprises´ challenge by combining management, organization and technology elements"Error: Reference source not found.

The IS support the decision making to solve the issues a company have such as leadership, strategy, management behavior activities and some elements as hierarchy, functions and culture.

Important of IS and technology

In the emerging of global economy, the technology has been advancing rapidly leads to transformation of industrial economies, transformation of the business enterprise make information systems essential in business today. In many businesses, survival and the achieving competitive advantage is difficult without use of information technology from basics as sending e-mail, searching information, having online meetings or simply talking by their mobiles.

Organizations use I.S and technology to reduce costs, balancing the different product capacity, increase operational efficiency, and improve communications and competitive advantage. There are four types of technological proceduresError: Reference source not found which can be discussed later on:

Automation involving utilize the machine capacity and increase effectiveness.

Procedure rationalization using the data received to eliminating unnecessary processes.

Reengineering of work flows and business processes based on information technology.

Paradigm Shifts change all processes and nature of business and Organization.

Organisation boundaries

"Organizational boundaries" is a term used in business and the legal profession mainly to distinguish one company from a separate but related company.(Holmstro1998)

C. Marlene Fiol (1989) said that organizational boundaries are imaginary dividers meant to distinguish a company from external but nearby influences. The organisation boundaries including vertical integration and outsourcing, designing and managing operating networks.

Twinings Information System

In 2006, Twinings initiated a project to address a number of issues that arose out of expense management.These included the time taken to process expense claims in general, and corporate card expenditure in particular.(Expensys2006) [3] 

The information is updated manually cannot be sufficient and involving several errors since Twinings deal with different transactions and information procedures, therefore, it is necessary to implement an enterprise application which include different levels of management. The process can increases firm's flexibility and productivity.

Benefits of IS

Twinings can improve the efficiency of their operations to achieve higher profitability. Using Walmart as an example, they uses RetailLink (Salient 2012)system which automated links to suppliers which can update the information about inventory, demand and feedback of customers immediately. From the information can help reducing unnecessary stocking and utilize sale.

Moreover, Information system is a major tool for firms to create new products and services. Twinings can understand market need as well as the need of customer same as Walmart use data-mining and the expertise intuitive analysis from RetailLink to understand and satisfy customer. (Salient 2012)

The IS can provide information from all level of operation help managers to make better decision at the right time. With quality information poor outcomes raise costs and lose customers will not happen. Information system made it possible for the managers to use real time data from the marketplace when making decision. (Salient 2012)

The good business services attract customers respond and create referral market. Twinings integrate with retailers in order to increase the customer awareness as well as improving their current products and services.Besides, the business with more engagement with its suppliers, can get better inputs from suppliers such as lower costs, higher quality. Tesco with high engagement with suppliers help them reducing the cost of supply.(Tesco 2012)

From increasing operation efficiency, reducing cost, develop good products and services, improve customer and supplier relationship, as well as improved decision making, the company can achieve competitive advantage. In addition, Twinings focus on providing tea and services, therefore, they have outsource non core to other company such as tea farm, distribution and IT which helps them to focus on their specialty.

Information systems are the foundation for conducting business today. In many industries, survival and even existence without extensive use of IT is inconceivable, and IT plays a critical role in increasing productivity. Although information technology has become more of a commodity, when coupled with complementary changes in organization and management, it can provide the foundation for new products, services, and ways of conducting business that provide firms with a strategic advantage.

Recommendation for IS

Enterprise System or Resource planning (ERP), and Supply Chain Management system (SCM). After several analysis, Twinings decided that ExpenSys can help Twinings to integrate with the new SAP ERP system. The system will support Twinings to reduce cost and improve consolidate financial system, efficiently and effectively at collecting data for tax and management purposes, maximize VAT recovery and fully automate from input processes. (Expensys 2012)

Customer Relationship Management system (CRM) helps to manage the relationship with customers and deal with them to optimize revenues and increase customer satisfaction and retention. The information collected from the customers helps companies to identify, attract and retain profitable clients. Tesco with the club-card scheme attract more customer not only from providing deals but also giving them a better service from the information collected. (Tesco 2012)

Knowledge Management system (KMS) is based on the knowledge and expertise that a company can reach from a certain process, department or interaction of people´s opinion and how to apply it into the processes of the business.

Besides, there are some other IS which can apply the lean production theory and six-sigma quality control to improve the current situation.

Total Quality Management (TQM) focus on high quality products and services. They can design the system to meet customers expectation, build strong relationship with suppliers as well as communication with employees to reduce the errors and strengthen the organisational culture. (Dale 2007)

Capacity and Inventory Management is very important for the OM/IS because it’s the capacity or maximum output that the operation can manage and deliver to customers.(Andrew2005)

M-commercial new way to shop: There are new technology advanced in the mobile industry leads to an easy shopping experience for customers. Tesco in Korean has launched the new marketing activity which help people to buy stuff using their phone. It can reduce the cost of physical based store as well as flexible for customers.(Telegraph 2012)

Potential Challenge

First of all, Twinings investment for Information systems and technology may cost a lot since it is required to interact with all department as well as update automatically with e-commerce.For example, Kolok spend on software and IT infrastructure came to $3.5 million.(FT2008). As Twinings launch IS, they are required to understand about the automation process and capacity extension which will raise the cost of implementing the process.

Moreover, the progress of implementing will take time and require expertise which involve recruiting and maintaining the IT/IS team and systems. Similar to Tesco (2007), Twinings need to need to adjust and develop the system to suit the business activities after analyzing the current situation, performance and technology.

Furthermore, Twining has to ensuring systems are used ethically and responsibly (ABF 2012) as well as it alignment with the corporate and other business strategies. It is difficult to deal with CSR within the organisation.(Ethical Consumer2012)

Conclusion

The implementation of the new IS not only solved the current issues but also made life easier for staff at all levels and was subsequently adopted in Twinings offices overseas. The level of service since that date has been consistent and the software has gone through a number of updates each of which has been seamless and trouble free.

Although, there will occurs high cost for implementing as well as an interruption with current activities, an upgrade and development of new IS is necessary to create the competitive advantage for the company. Moreover, it can increase the opportunity for business to expand.

TASK 3: The emerging technologies and organisation behaviour

Emerging technologies are contemporary advances and innovation in various fields of technology(O.D.D1997).

Twinings agriculture tea can applied technology to increase the effectiveness and efficiency in farming. First of all is the close ecological systems such as green house(Gitelson 2003) and the automation machinery(fieldrobot2012) which can increase the efficient of the processing.

Secondly is the advanced in the media technology which can be applied to all business to the function of marketing, customer and supplier research. It can help business with visualize attractive advertising to customers.

The IT can increase the level of automation to lowering the cost of operation as well as the errors made. It can reduces unnecessary progress by using the data received to redesign work flows and business processes, therefore, increase the speed of respond and making decision.

Last but not least is the IT and telecommunication technology. The innovation of internet, e-commerce and m-commerce change the way of doing business create paradigm shifts change all processes and nature of business and Organization.(Telegraph2012)

From the information given above, it can be seen that there are several information system can be applied to the business which creates the revolution to the operation.

Technology in Organisational Dimension

Technology is devices which supporting human activities based on knowledge and skills (David 1987). This approach may not be applicable to modern organisation behaviour because nowadays, the importance of information and communication technologies has increased.

In the organisational behaviour & management (David, Hugh 2007), the author mention about Alan Fox's idea of "material technology" and "social technology". To him "social technology" including corporate communication, reward and control system, job specifications as well as rules and decision making process and the relationship among workers.

The benefits of technology in organisational behaviour

The agriculture technology advanced can reduce the work load of people by using machinery. It creates better results and reduce time on the job leads to employees freedom. The level of work will change from heavily work load to highly skilled work.

The media technology advance bring to organisation the opportunity to motivate the creativity of the marketing personnel. They can be motivated by the challenge of competition with the new technology in the market. They will be encourage to improve their skills and knowledge in order to catch up with others.

The technology bring individual empowerment and freedom since they can communicate without boundaries. It can reduce the wasting time on face to face communication and increase the speed of respond. For example, people can work from home and send all their work through email to the company. (Blauner 1964)

In addition, IT can help interactive among department since people can communicate freely in the organisation. The information can be retrieved easier and faster which accelerate the speed of analysis, operation and decision making.(Expensys2012)

The control system can be much easier, employees can have the right support from manager as well as manager receive the work progress updated quickly. In the employees perspective, they can receive the motivation of work acknowledgment and guidance from manager. On the other hand, manager can control the work progress and make decision based on the information report quickly.

The drawback

The agriculture technology advanced also bring the negative effect to the farmer. The automation machinery as well as the advancing in food process will leads to a reduction in number of workers and also increase in level of skills from workers. It affect the culture of doing things in the field. (Barnes 1985)

The media advanced bring the challenge into the organisation, which affected the employees on the research and development. The dynamics change makes it hard to adapt with the new environment of challenge.

Moreover, people rely on technology more than ever, their relationships traditionally are affected. They communicate electronically and it makes the social life become boring and stressful (Cairncross 1998).

As the technology advanced, the boundaries between home and work are blurred (Agre 2000). People can use mobile phone for communication, leisure and social relationship which can reduce the concentration at work of employees. On the other hand, the technology creates many level of control which can demotivate employees since people feel stressful and being controlled. It will leads to a decreased in efficiency and effectiveness of the organisation. (Fox 1974)

Organisational Behaviour in Twinings

In Twinings using lean production where the dynamics work teams in the factory. The system aims is to reduce waste, slack and redundancies. (Womack 1990). In the system, the supply chain linked to each other from suppliers to producers and distributors to increase the speed and efficiency with few errors. In this kind of production, it has the space for flexibilities and learning which can improve the performance of organisation. The change in technology increase the level of automation will create the advantage of efficiency and effectiveness in lean production. Unlike mass production where all thinking and learning is ignore, lean production has the opportunity for employees to achieve higher skills.

The operating function also work in team of specialist, as Lewin's theory about group (1948) suggest, working in group can motivate people with the concern of group as well as the work and self interest. This kind of social relation can be improve in dynamic group which not only motivate employees but also give them the freedom of workplace. The advanced in technology can help the communication in team better and improve performance and achieve business objectives. Teamwork is itself a control mechanism. (Barker 1999)

On the other hand, Twinings has low control over their employees may have negative effects. Agency theory suggest that people act according to their self interest rather than the organisation interest. Therefore, under theory Y, Douglas(1960) suggest that people can only work best under control. Therefore, the technology advanced increase employee's freedom means lowering the efficiency and effectiveness of the company.

Parker and Slaughter (1988) suggest that teamwork should be a managerial strategy of work intensification. In other words, they promote the theory of management by stress which force people to work more. Without the stress, people cannot achieve better results.

The communication technology advanced may face the resistance of the employees since it affect the social of the organisation. As they already created the culture inside each department, the technology will force them to interact more with others leads to a resistance. It cannot be solved easily since it become the norm in the organisation, therefore, they need to overcome the resistance before implement the new system.

In conclusion, even though, there are still high resistance in the organisation as well as drawback from the implementation of the IS, the benefits of applying emerging technology overweighted the negative side effects.

Conclusions & Recommendations

In order to increase Twinings market share, the company required knowledge and understanding of customer’s needs, efficient in operation process, better information and developing new technologies.

It can be seen that the flexible system where it can be reviewed and improved is required for interaction process with customers and suppliers. Consequently, it generate more transactions and reduce cost. However, Twinings must improve their knowledge acquisition system by focusing on interaction with customers and employees.

For the operation function with the use of ERP and SCM it´s recommended to base their activities in capacity by a Manage Demand Plan. Once they understand and get used by the automation information process they must apply the Rationalization of procedures by eliminating unnecessary processes that give them reduction of cost and an obvious competitive advantage.

The emerging technology can help the company not only achieving higher efficiency and effectiveness from the process of automation but also from the motivation of the staff for more freedom and self control. Besides, strengthen the B2C commerce by developing in their CRM to learn more about customer buying and decision making process to increase sales. It´s recommended the implementation in their new I.S architecture model. By developing the system to support these technologies the company will achieve a successful and competitive advantage in a long term of period.

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In comparison with other industries, the 5 key performance generally can be seen as:

CHART 1. QUALITY: "Doing things in a proper and correct way"

Hotel

Clean room, good food, nice environment

Media

Attract attention of people

Twinings

Products are high quality teas and good customer services

Good quality of Twinings teas, reduces costs, less processes in the operation of orders and deliveries.

CHART 2. SPEED: "Having the product or service when the customer wanted and needed"

Hotel

The time preparation for room, food and speed of serving

Media

The speed of producing new shows, episodes or entertainment.

Twinings

Kept the minimum time between the order is made and its delivery process begins

A good use of speed operations helps reducing stock inventories and risks in the forecasting of productions of goods and servicesError: Reference source not found.

CHART 3.DEPENDABILITY: "Doing things in time and give them when are expected"

Hotel

Service uniformed, consistency and clear instruction

Media

On time delivery

Twinings

Fast customer services, fast delivery.

Achieving a good dependability in Twinings increase the customer satisfaction as well as value for money, and would generate trust to buy from their website.

CHART 4.FLEXIBILITY: "Being able to change and adapt when is not expected"

Hotel

Offer a wide range of options available

Media

Be prepared of new technologies

Twinings

Open to the opportunity such as the contract with British Airways [4] 

There are several opportunity for Twinings to launch their products such as the contract with British Airways to provide tea on plane or the growing trend of tea drinker in the world.

CHART 5.COST: "Have competitive prices and reduce cost as possible"

Hotel

Control the cost of food, services

Media

Keeping operation low cost down as possible

Twinings

Reduce production and delivery cost

For Twinings, the differentiation strategy is costly leads to low cost competitive advantage. Therefore, lowering cost of production strategy can benefits themselves.