The fifth week of lecture...Chapter 5
ASSALAMUALAIKUM everyone... We continue the entry of my blog...
This time the chapter is about THE FIVE GENERIC COMPETITIVE STRATEGIES : WHICH ONE TO EMPLOY ?
The core concept of this chapter :
- A low-cost provider's basis for competitive advantage is lower overall costs than competitors. Successful low-cost leaders, who have the lowest industry costs, are exceptionally good at finding ways to drive costs out of their businesses and still provide a product or service that buyers find acceptable.
- A cost driver is a factor that has a strong influence on a firm's costs.
- Differentiation enhances profitability whenever a company's product can command a sufficiently higher price or produce sufficiently greater unit sales to more than cover the added costs of achieving the differentiation.
- The essence of a broad differentiation strategy is to offer unique product attributes that a wide range of buyers find appealing and worth paying for.
- A uniqueness driver is a factor that can have a strong differentiating effect.
- Best-cost provider strategies are a hybrid of low-cost provider and differentiation strategies that aim at providing desired quality/ features /performance/ service attributes while beating rivals on price.
tq...:)
Addition :
From the star online about Air Asia Bhd.
http://www.thestar.com.my/Business/Business-News/2013/11/08/Exec-chairman-AirAsia-still-an-aggressive-animal.aspx
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