COMM 315 Lecture Notes - Lecture 3: Total Quality Management, Cost Leadership, Cost Driver
1 Feb 2017
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Document Summary
When discussing strategy, it can be broken down into business strategy and corporate strategy. A good strategy makes real choices and trade-offs and creates distinctiveness by focusing on sources of profitability that competitors can"t match. It links choices to how companies make money over time using their key assets and capabilities, ensures consistency across the business, and is executable with existing assets, capabilities and resources. In creating a strategy, one must understand: where value is created or destroyed, why value is created or destroyed (market attractiveness, competitive position, what choices you can make to unlock value (business model) When trying to obtain a cost advantage, it can be very useful to: standardize the product, determine and control the cost driver and configure the value chain to focus on efficiency. This can be done by raising the performance of the product or service or by increasing a customer"s unwillingness to switch to a non-unique product.
