The Purpose of Strategy: Value Creation - PowerPoint PPT Presentation

1 / 2
About This Presentation
Title:

The Purpose of Strategy: Value Creation

Description:

Sell products either at average industry prices to earn a profit higher than ... labor, and efficient distribution channels to undercut global rivals on price. ... – PowerPoint PPT presentation

Number of Views:42
Avg rating:3.0/5.0
Slides: 3
Provided by: sull5
Category:

less

Transcript and Presenter's Notes

Title: The Purpose of Strategy: Value Creation


1
The Purpose of Strategy Value Creation
2
Firm Strategy and Value Creation
  • Low Cost Leadership
  • Differentiation
  • Making those products that consumers are willing
    to pay a premium price
  • Develop product that offers unique attributes
    that are highly valued by customers and which
    customers perceive to be better than or
    sufficiently different from products offered by
    other companies.
  • The value added by uniqueness allows the firm to
    charge a higher price that offsets the added
    costs of making it.
  • Demands a company develops points of uniqueness
    that rivals find hard if not impossible to match
    or copy,
  • The Standards of Effectiveness Prevail
  • Making their products for a lower cost than any
    other firm in their industry
  • Strive to be the low cost producer in an
    industry for a given level of quality.
  • Sell products either at average industry prices
    to earn a profit higher than that of rivals or
    below the average industry prices to capture
    market share
  • Combined efficient manufacturing operations,
    inexpensive, productive labor, and efficient
    distribution channels to undercut global rivals
    on price.
  • The Standards of Efficiency Prevail
Write a Comment
User Comments (0)
About PowerShow.com