BUS 478 Lecture Notes - Lecture 4: Cost Leadership, Niche Market, Target Market

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Da Silva Rui Jorge Basto

Document Summary

Intended to create differences between the firm"s competitive position and those of its competitors. To position itself, the firm must decide whether it intends to. Perform different activities as compared to its rivals. An integrated set of actions taken to produce products with features that are acceptable to customers at the lowest cost. Price competition among rival suppliers is especially vigorous. There are few ways to achieve product differentiation that have value to buyers. Most buyers use the product in the same ways. Buyers incur low costs in switching their purchases from one to another. Too much focus on cost reductions may occur at expense of customers" perceptions of differentiation. Processes for production may become obsolete due to competitors" innovation. An integrated set of actions taken to produce products that customer perceive as being different in ways that are important to them. Customers value differentiated features more than they value low cost. There are many ways to differentiate the product.