Low cost strategy is one of the three generic marketing strategies. Companies use this strategy to offer low price in its products/services by focusing on various points in its value chain activities. In order to be a successful low-cost competitor in a competitive environment‚ companies focus on several issues; which all pass from the ways of margin improvement (in terms of increasing revenue and reducing cost) and asset effectiveness (in the sense of minimizing working capital and maximizing
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Question # 1 What do you mean by ‘new product’? List the steps in new product development process and the major consideration managing the process? New Products: New Products are goods or services that differ from its characteristics and new products produced by the firm. Types of Product: • New to world products: These are new inventions and discoveries like laser printers etc. • New category products: These are new for the company but not for the World. • Additions to product lines: These are
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Best-Cost Strategy VS Low-Low Cost Strategy Q1: What is the difference between best-cost strategy and low-cost strategy? Best-cost strategy is when the company makes an upscale product at a lower price which in turn gives more value to customers in exchange of money. This means that the strategy involves focusing towards customers who are value-conscious and are willing to pay money in exchange of a good that has upscale features. Low-cost strategy focuses on niche customers. They sell their
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Int. J. Production Economics 141 (2013) 529–540 Contents lists available at SciVerse ScienceDirect Int. J. Production Economics journal homepage: www.elsevier.com/locate/ijpe Postponed product differentiation with demand information update$ Juliang Zhang a‚ Biying Shou b‚n‚ Jian Chen c a b c Department of Logistics Management‚ School of Economics and Management‚ Beijing Jiaotong University‚ Beijing 100044‚ China Department of Management Sciences‚ City University of Hong Kong‚ Hong
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Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad Reprint R0804E It’s a dirty little secret: Most executives cannot articulate the objective‚ scope‚ and advantage of their business in a simple statement. If they can’t‚ neither can anyone else. Can You Say What Your Strategy Is? by David J. Collis and Michael G. Rukstad COPYRIGHT © 2008 HARVARD BUSINESS SCHOOL PUBLISHING CORPORATION. ALL RIGHTS RESERVED. Can you summarize your company’s strategy in 35
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J.C. Penney’s CEO Ron Johnson embraced focused-differentiation as his primary competitive strategy. The focused-differentiation strategy is to offer products or services that are of unique or superior value compared to those of competitors and to target a narrow market. This strategy closely mimicks differentiation strategy as both are used in efforts to attract customers‚ but focused-differentiation is more focused on a certain group of potential customers. The CEO was targeting a different kind
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Today - Pursuing the Network Strategy By January 2000‚ USA Today (USAT) was the highest circulated newspaper in the United States (J. Roberts‚ Tushman‚ 2005). Even though the company has had positive operating profits for the last years and indications on an increase in 2000‚ Tom Curley‚ USAT’s CEO‚ was concerned about a couple of trends affecting USAT. In January 2000 Curley presented a vision of a “networked” USAT to his senior staff. In his speak he tried to imply that the industry is about to change
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differentiation 1. The similarity of the turning points and the points of inflexion is both of them can be stationary point‚ but not all the stationary points are turning points or points of inflexion. A turning point is a point which is the point of the sign of the derivative changes. And the turning points are the local maximum and minimum where the derivative of the function changes from positive to negative or from negative to positive. When the shape of the function is smooth‚ the turning
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FMCG firms in a fix over pricing strategy | | | | Some relief is on the way for fast-moving consumer goods( FMCG) companies‚ with prices of crude oil‚ wheat‚ milk and palm oil either on the decline or stabilising. Even as flexible packaging prices — which had become a new headache for FMCG companies — may come down on the back of stable crude oil prices‚ the verdict on production costs is still unclear. While palm oil prices have crashed by almost 40 per cent‚ wheat and milk rates are
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Singapore Airlines - An Excellent Asian Brand Think about one of the strongest brands from Asia‚ and chances are that Singapore Airlines and its long-serving‚ almost iconic Singapore Girl easily come to mind. Singapore Airlines has consistently been one of the most profitable airlines globally‚ and has always had the reputation of a trendsetter and industry challenger. There are several good reasons for this. Most relates directly to the strong brand management driven primarily by the Singapore
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