GBA 490 Lecture Notes - Lecture 5: Capacity Utilization, Revamp, Supply Chain

• School: University of Alabama
• Department: General Business Administration
• Course: GBA 490
• Professor: Houston

Document Summary

A firm"s competitive strategy deals exclusively with the specifics of management"s game plan for competing successfully . Achieve a particular kind of competitive advantage. Low-cost provider striving to achieve lower overall costs than rivals on products that attract a broad spectrum of buyers. Broad differentiation differentiating the firm"s product offering from rivals with attributes that appeal to a broad spectrum of buyers. Focused low-cost concentrating on a narrow price-sensitive buyer segment and on costs to offer a lower-priced product. Best-cost provider giving customers more value for the money by offering upscale product attributes at a lower cost than rivals. Goal to have the lowest costs and prices compared to rivals offering products with comparable attributes. Effective low-cost approaches: pursue cost savings that are difficult to imitate, avoid reducing product quality to unacceptable levels. A low-cost producer"s basis for competitive advantage is to lower overall costs than competitors.