chapt05_lecture分析.pptxVIP

CHAPTER 5;5–2;WHY DO STRATEGIES DIFFER?;THE FIVE GENERIC COMPETITIVE STRATEGIES;FIGURE 5.1;LOW-COST PROVIDER STRATEGIES;A low-cost provider’s basis for competitive advantage is lower overall costs than competitors. Successful low-cost leaders, who have the lowest industry costs, are exceptionally good at finding ways to drive costs out of their businesses and still provide a product or service that buyers find acceptable. A cost driver is a factor that has a strong influence on a firm’s costs.;A low-cost advantage over rivals can translate into better profitability than rivals attain.;MAJOR AVENUES FOR ACHIEVING A COST ADVANTAGE;A cost driver is a factor that has a strong influence on a company’s costs.;COST-EFFICIENT MANAGEMENT OF VALUE CHAIN ACTIVITIES;FIGURE 5.2;COST-CUTTING METHODS;COST-CUTTING METHODS (cont’d);REVAMPING THE VALUE CHAIN SYSTEM TO LOWER COSTS;(c) 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. ;THE KEYS TO BEING A SUCCESSFUL LOW-COST PROVIDER;Success in achieving a low-cost edge over rivals comes from out-managing rivals in finding ways to perform value chain activities faster, more accurately, and more cost-effectively.;WHEN A LOW-COST PROVIDER STRATEGY WORKS BEST;PITFALLS TO AVOID IN PURSUING A LOW-COST PROVIDER STRATEGY;A low-cost provider is in the best position to win the business of price-sensitive buyers, set the floor on market price, and still earn a profit.;Reducing price does not lead to higher total profits unless the added gains in unit sales are large enough to bring in a bigger total profit despite lower margins per unit sold.;A low-cost provider’s product offering must always contain enough attributes to be attractive to prospective buyers—low price, by itself, is not always appealing to buyers.;BROAD DI