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(generic business strategies) - Coggle Diagram

- - - - the company produces products or services that are similar to its competitors, but at a lower cost.
      - placing most of its emphasis on controlling costs in order to generate economic value added and profits
    - - production techniques
        
        total quality management
        
        reducing waste
        
        automation
      - product design
        
        design for manufacturing
        
        efficient materials use
        
        design variety and complexity
      - inputs costs
        
        location
        
        supplier relationship/bargaining
        
        raw material sources
      - capacity utilization
        
        amortization of high fixed cost assets
        
        filling spare capacity
      - scale/scope economies
        
        large batch sizes
        
        indivisible costs
        
        specialization
        
        common inputs
      - organizational or managerial inefficiency
        
        bureaucracy
        
        inertia
        
        slow decision making
        
        hierarchy
        
        politics
    - - to reduce or eliminate unwanted costs that add very little or no value
    - - look at any of the cost drivers of a business in order to reducing the expense of producing the company's product or service
  - - - the company produces products or services that are unique and different from competitors.
      - emphasizing value creation for customers rather than cost control and produces higher EVA and profits
    - - customer services
        
        e.g. hotel industry
      - customization
        
        e.g. Starbucks customized services
      - product features
        
        e.g. smartphone industry
      - complements
        
        e.g. Apple iTunes store (legal music)
    - - identify customers' value drivers, which relies on market research and combine that with firm's insights about customers
      - Once we know what kinds of things customers value, then it is back to figuring out how to use resources, capabilities of the firm system of activities to create that value
    - - focused differentiation advantage
        
        narrow scope and differentiation are often a natural fit
        
        contains costs
        
        cost leadership
        
        promotes exclusivity that makes them more valuable to customers
      - they are targeted at a narrower market segment and limited distribution channel