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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1186 |
Essay's paper body
Firms may also choose to compete across a broad market or focused market.
Cost leadership: Organizations compete for a wide customer based on price. Price is based on internal efficiency in order to have a margin that will sustain above average returns and cost to the customer so that customers will purchase your product/service...
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Works well when product/service is standardized can have generic goods that are acceptable to many customers, and can offer the lowest price. Continuous efforts to lower costs relative to competitors are necessary in order to successfully be a cost leader. For example:
? Building state of art efficient facilities (may make it costly for competition to imitate)
? Maintain tight control over production and overhead costs
? Minimize cost of sales, R&D, and service...
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