What generic strategy Rahman should adopt.

Cost Focus Strategy:

In order to increase the overall sales and revenue, WOW MOMOS should increase the
sales in sales formats which have low orders per day as shown in exhibit 7 by focusing
on the cost reduction.

As per the data given below are the store format which have considerable low average
orders per day on which company should focus on.

The amount of reduction in price of momos should be done by considering specific

characteristics and conditions given below

1) Area surrounding the store

2) Average income level of the people in the target area
3) Number of competitor QSRs present in the surrounding area and their price
4) Operation cost of the type of store format

For example if we consider the Kiosks store format, they have malls and IT parks as
surrounding area having the highest number of people as a potential customer but due
to presence of too many competitors and very little price difference they are unable to
attract customers. A proper cost reduction will attract the customer for placing the order
with WOW MOMOs.

Reduction in price of the products can be in form of discounts for students by the store
format which are targeting the schools and colleges area in order to attract the students.

The area with high level of income will respond to the reduction in cost of momos even if
it the reduction is less as compared to other region store as competitors focus on
premium products in this kind of area.