MKT 337 Chapter Notes - Chapter 2: Southwest Airlines, Reverse Engineering, Swot Analysis
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Factors that cause customers to patronize a firm and not the competition: cost competitive advantage. Results from obtaining inexpensive raw materials, creating an efficient scale of plant operations, designing products for ease of manufacture, controlling overhead costs, and avoiding marginal customers. Cost competitive strategy: being the low-cost competitor in an industry while maintaining satisfactory profit margins: Reverse engineering a low-(cid:272)ost (cid:272)o(cid:373)petito(cid:396)"s p(cid:396)odu(cid:272)t (cid:272)a(cid:374) sa(cid:448)e (cid:396)esea(cid:396)(cid:272)h and design costs. The chef"s ga(cid:396)de(cid:374), a 225-acre ohio farm, specializes in growing and shipping rare artisan vegetables directly to its customers. Chefs from all over the world call to order o(cid:396) (cid:396)e(cid:395)uest a u(cid:374)i(cid:395)ue ite(cid:373), (cid:449)hi(cid:272)h is g(cid:396)o(cid:449)(cid:374) a(cid:374)d shipped (cid:271)(cid:455) the chef"s ga(cid:396)de(cid:374). The farm provides personal ser(cid:448)i(cid:272)es a(cid:374)d spe(cid:272)ialized p(cid:396)e(cid:373)iu(cid:373) (cid:448)egeta(cid:271)les that a(cid:396)e(cid:374)"t a(cid:448)aila(cid:271)le anywhere else and relies on its customers to supply it with ideas for what they would like to be able to offer in their restaurants.
