Ernst & Young's Strategy for Competitive Advantage

As per today's globalized business scenario, Ernst & Young is using different innovative and attractive strategies in order to achieve the competitive advantages as well as to survive in the complex economic situation. For example, the company is using cost leader, differentiation, diversification and cost focus in order to accomplish competitive advantages as well as scope.

Cost Leader Strategy of Ernst & Young:

According to this strategy, it is constructing effective-scale facilities and establishing tight control of production. In addition, company is also minimizing different costs that are associated with the expenses of sales, manufactured goods examine and development and service (Dyck & Neubert, 2008). Along with this, Ernst & Young is also investing more funds on the state-of-the-art manufacturing technologies in order to achieve competitive advantages. In this way, company is providing standardised services with different significant features that are acceptable to customers--in other words. It means company is providing standardised professional services to customer. In this way, company, the customers of the company receiving the value. At the same time, it is also founded that, company is also maintaining constant efforts aimed at lowering their costs relative to competitors' costs and creating value for customers (Enz, 2009).

Differentiation Strategy of Ernst & Young: In the economics market condition, company is also using differentiation strategy in order to target a particular market and to achieve competitive advantages (Kaiser, 2011). As per this strategy, the company is providing more attractive services to the customers in the professional service industry. It means Ernst & Young is offering reliable as well as highly standardized profession services at the lower price as compare to its customer. For instance, services provide by Ernst & Young's has differences in quality which are usually accompanied by differences in price (Chang, 2010).

Recommendation to improve Cost leader Strategy

In order to improve the effectiveness of cost leader strategy, company should focus on sustainable cost reduction programs. Additionally, company should also focus on the review of supplier contracts as well as on the outsourcing (Dyck & Neubert, 2008). Along with this, company should also create and develop strategic joint ventures in order to optimize economies of scale. Apart from this, Ernst & Young should also develop different innovative criteria for review of capital tied up in high levels of pre-stripping and advance development and stockpiles (Enz, 2009).

Recommendation to improve Differentiation Strategy

Ernst & Young can improve differentiation strategy by addressing the point of pain or performance gap felt by buyers in a market (Kaiser, 2011). Additionally, Company should also focus on the different aspects of the business such as: timing of service delivery, location / convenience, Reputation, Consumer marketing, Distribution channels and Service and support in order to improve the differentiation strategy. So, company should adopt the different strategies and tools to increase the differentiation strategy (Chang, 2010).