BPL 5100H Study Guide - Quiz Guide: Cost Leadership, Value Proposition, Choice Hotels
24 Oct 2018
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Core competencies relating to efficiency and /or development. Companies on the frontier have the most successful strategy i. e competitive advantage. Trade offs- company offering best combo is going to be on the frontier. Establishing a cost structure that allows offering goods and services at lower prices than competitors. Firm positions products to appeal to the price-sensitive customer. Overriding goal is to lower costs relative to industry rivals to be profitable at lowest industry prices. Concentrates on functional changes that enhance efficiency. Economies of scale: all value chain activities: utilization of fixed assets, specialization, bargaining power. Process improvements to improve yields and reduce wastages: often happens by learning from experience. Inventory mgt: jit, kanban, etc: reduction of overheads. Economies/ diseconomies of scale(a firm sees an increase in marginal costs when output is increased. ) Minimum efficient scale (misnomer) at the point where diseconomies of scale begin to kick in. It/erp/srp: better flow of data, video conference.
