33:620:301 Chapter Notes -Human Resource Management, Cost Leadership, Revamp
9 Apr 2014
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The five generic competitive strategies: low cost provider strategy. Striving to achieve overall lower costs than rivals on comparable products that attract a broad spectrum of buyers. A company achieves low cost leadership when it becomes the industry"s lowest cost provider rather than just being one of perhaps several competitors with comparatively low costs; do not necessarily have the absolute lowest costs. A) perform value chain activities more cost-effectively than rivals. Pay a great deal of attention to cost drivers, which is a factor that has strong influence over a company"s costs, and focus on cutting these cost drivers down. Strive to capture all economies of scale. Taking full advantage of experience and learning curve effects. Using lower cost inputs if they will not sacrifice quality. Using bargaining power with suppliers or others in value chain system to gain concessions. Using communication and it to achieve operating efficiencies. Being alert to the cost advantages of outsourcing or vertical integration.
