The High Stakes of Low-Cost Competition Harvard Case Solution & Analysis

Low-cost competitors on the offensive in many industries, from airlines B2B markets capital equipment market share erode traditionally enjoyed premium companies. Working with low-cost competition, you must first understand how radically the business model has changed: fewer companies are doing this, but rather specializes in your product development or delivery or customer relationships. Although there may be good reasons for adopting a more focused business strategy, companies need to understand how the interaction between premium and low-cost competitors, in fact, feeding a threat that must be skillfully managed. Using a variety of real-life examples of business, the author argues that companies today need to learn to take a low-cost competitors fairly good segment, develop hard copy product performance management, and build deep and lasting relationships with their customers. Double-pronged strategy - one that both the problem of low cost competitors pretty good segment, while competing as a premium player, using either manual or relational performance options value - may be the low-cost competitors to beat at their own game. "Hide
by Adrian Ryans Source: IESE-Insight Magazine 8 pages. Publication Date: March 15, 2010. Prod. #: IIR020-PDF-ENG

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