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9 months ago in Competitive Strategy , Operations Research By Shreya K
Cost Leadership is the same thing as having a good production strategy
In business strategy, what's the actual difference between aiming to be the low-cost leader in your industry and simply having an efficient production strategy? Aren't they just two ways of saying the same thing?
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By Veena Answered 3 months ago
Not quite,it's about scope. Cost domination (or leadership) is your overall competitive goal: to be the cheapest provider in your market to win customers. A production strategy is one of the operational tools you use to get there. It's the specific plan for how you'll make things efficiently, using lean methods, automation, or superior supply chains. You can have a great production strategy that supports other goals (like quality), but cost leadership is the overarching market position you're fighting for.
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