BUAD441 Lecture Notes - Lecture 5: Value Chain, Luxury Vehicle

• School: University of Delaware
• Department: Business Administration
• Course: BUAD441
• Professor: Sharon Watson

Document Summary

5 generic competitive strategies low-cost leadership strategy: broad differentiation strategy, best-cost provider strategy focus strategies (2, horizontal advantage sought, providing similar product at lower cost, creating more value for customers differentiation. Rearrange value chain activities eliminate cost- producing activities. Pay attention to price to match rivals: few ways to differentiate that have value to buyers, when buyers have similar needs, weaknesses, may be easy to imitate low cost methods. Can only by 1 lowest cost provider: failure to respond to: Declining buyer sensitivity to price: conclusions: appeals to broad range of buyers, seeks advantage based on cost. Broad differentiation: creating some form of value that other firms don"t provide, prefer their offerings rather than rivals, value chain, build value thru marketing and sales creating strong brand name. Auto industry thru r&d tech development: built in technology in car, fewer defects, improved quality.