Successful low-cost competitors don’t just sap margins incrementally. What makes them so dangerous is their ability to redefine the entire competitive landscape. The low-cost competitor transforms its value chain to reduce prices drastically. With low costs as a pivot, it shifts the ground beneath larger, less flexible opponents and turns their mass and momentum against them. Responses often come too late to be effective, and are hampered by strategic assumptions that no longer apply.
The way to beat low-cost competitors that have the potential to become serious competitors is to identify and deal with them early, before they get a foothold in a market.
Content: Article
Authors: Bob O’Meara, Christian Hagen, Jim Morehouse, Todd Huseby
Source: Kearney
Subject: Strategy
Authors: Bob O’Meara, Christian Hagen, Jim Morehouse, Todd Huseby
Source: Kearney
Subject: Strategy
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