In this webinar, we will introduce a simple conceptual framework to help executives and managers think about the possible ways their companies can respond to the low cost challenge. Should they confront the LCCs in their market segments and/or distance the business from LCCs by opening up a performance leadership gap (significantly better products or services) and/or distance the business from low cost competitors by building deep and intimate relationships with customers? We will look at examples of companies who have implemented one or more of these strategies and the challenges they have faced in implementing the chosen options.
Overview
Syllabus
Introduction.
Value propositions have three core elements.
Products and services emphasizing relational value and price value typically capture a growing share of the market over time.
Companies have three basic options for responding to low cost competition.
Move into lower tiers of the market and challenge directly (either through organic growth or acquisition).
Gillette (P&G) has been successful at increasing performance value over time.
Option 2: Distance business from low cost competitors by increasing performance value.
A DSP example from the petrochemical industry.
SKF has had to make a number of acquisitions to enable it to create better solutions for customers.
Distance business from low cost competitors by increasing relational value.
Orica's response was to offer customers blasting solutions.
Low cost competition is a big and growing challenge for many leading companies and it won't go away and you must respond to it!.
Taught by
Stanford Online
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Reviews
4.5 rating, based on 2 Class Central reviews
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The webinar is a brief discussion on the different parity scales of a product or service offered by a company, namely price, performance or relational parity. In order to overcome the threat of low cost competition, the company has to choose atleast one parity to strengthen. The company can choose price parity. One of the ways a company can fight on price parity scale is to a lower tier in the market and compete directly. The other way is to fight on the performance parity scale and offer a significantly better quality or perfoming product or service. The third way is to compete on relational parity scale. Where relational intimacy among the companies come into effect.
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Yasir Ranait was wonder course and help to grow my business specially in low price market segment where customer has very low buying power and have limited choice to select the product
