To compete with value-based companies that offer more for less, companies should deliver high quality at low prices to attract consumers. They can compete by keeping costs low, differentiating their offerings in areas that give advantages, and executing processes efficiently. However, a strictly low-cost business model may only be right if it makes existing businesses more competitive or gives new businesses advantages over competitors. Effective advertising and focusing on differentiated areas are important to compete on both price and quality.
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1. Competing with Value-Based Companies Group 7 Macky * Ryan * Maritess * Macy Marketing Management 6 Aug 2010
2. Competing with Value-Based Companies Why deliver more for less? How do you compete? Is low-cost operation right for you?
7. Execution Implement effective and efficient process implementation focus on advertising and promotional initiatives may need to downplay / abandon target market 2. How do you compete?
8. 3. Is low-cost operation right for you? Companies should set this up ONLY if: existing businesses would be more competitive new businesses will have more advantages
9. Competing with Value-Based Companies Importance of Differentiation and Execution Group 7 Macky * Ryan * Maritess * Macy Marketing Management 6 Aug 2010
Editor's Notes
#4: These are some examples of value-based companies that offer high quality goods and services at low prices
#5: Companies offering the powerful combination of low prices and high quality are capturing the hearts and wallets of cunsumers all over the world
#7: To compete effectively with value based rivals, companies must be able to successful differentiate themselves from the rest. This is because in a value based competition, consumer expectations regarding price and quality have changed. --- Focus on areas where value-based companies’ business models give other companies to maneuever.
#8: Execution plays a key role especially in terms of prices and cost. It would be difficult to challenge value leaders on their own terms, this sometimes there is a need to downplay or abandon some target markets. Overall there is a need to create a synergy with all aspects of business operations to be more competitive and innovative.
#9: Low-cost operation must be designed and launched to be a moneymaker in its own right, not just as a defensive play.