They give direction to the company and set goals that the company inevitably tries to aspire to. From small businesses to Fortune 500 companies, business strategies are used to advance in a crowded market and can help set them apart from the rest. Nebulon Inc in this example is a company that has invested time and resources to determine the need to operate using a cost leadership approach and save costs on the manufacturing front. It's unknown what kind of market problems would have pushed Nebulon to adopt this strategy, but it's clear that they wanted to cut expenses rather than create high-quality products as they had originally done. Hopefully Nebulon did his homework and decided this was the best path, but regardless it's important for any company to want to put in the effort to follow a well thought out company