MGMT3001 Lecture Notes - Lecture 6: Cost Leadership, Customer Service, Vertical Integration

• School: UNSW, UNSW Sydney
• Department: Management
• Course: MGMT3001
• Professor: Janiswardrop

Document Summary

Crafting response to build competitive advantage, enhance performance. To flesh out" the business level: multiple levels of strategy happening at the same time at any given moment. Competitive strategies: consolidation of an organisation"s: efforts to please customers, the offensive and defensive moves to counter manoeuvres of rivals, the response to changing market conditions, the specific kind of competitive advantage it is trying to achieve. Commodity products / services non -viable quadrant low. Knowing what is important and unimportant to customers. Finding and sustaining unique or different ways of competing. Other cost minimisation tactics: lower specification, no bells and whistle" features, limited product lines, low cost distribution channels, most economical delivery methods. Revamping value chain: selling direct to cosnumers, coordinating with suppliers, reducing materials handling and shipping costs. Uniqueness drivers: product features and performance, customer service, production r&d, employee skill, training and experience, sales & marketing, quality control processes.