Accounting MRK108 Chapter Notes - Chapter 3.5: Business Process, Rolex, Boston Consulting Group
22 Dec 2016
School
Department
Course
Professor
Document Summary
Performing swot analysis allows firms to identify their competitive advantage. Competitive advantage: set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. Firms may have three types of competitive advantages: cost, production/service differentiation, niche segmentation. Cost leadership: obtaining inexpensive raw materials, creating an efficient scale of plant operations, designing products for ease of manufacture, controlling overhead costs, avoid marginal customers. Cost competitive advantage: low-cost competitor in an industry while maintaining satisfactory profit margins, enables a firm toe deliver superior customer value. Cost can be reduced: experience curve. Curve that show costs declining at a predictable rate experience with a product increases. Reflect learning by technological advances of economic scale. Historic experiences for predicting and setting prices. Allows management to forecast costs and set prices based on anticipated costs opposed to current costs. Experience curve made by boston consulting group in.
