Cost Leadership Strategy: Competitors
• Due to cost leader’s
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–21
Rivalry with Existing
Competitors
Cost Leadership Strategy: Buyers
• Can mitigate buyers’
power by:
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–22
Bargaining Power
of Buyers
Cost Leadership Strategy: Suppliers
•Can mitigate
suppliers’ power by:
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permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. 4–23
Bargaining Power
of Suppliers
Cost Leadership Strategy: New Entrants
•Can frighten off new
entrants due to:
power of
buyers
substitute
products
The Threat of
Potential Entrants
Cost Leadership Strategy: Substitutes
•Cost leader is well
positioned to:
potential substitutes.
Product
Substitutes
Cost Leadership Strategy (cont’d)
•Competitive Risks
Differentiation Strategy
How to Obtain a
Differentiation Advantage
Control
Cost Drivers if
needed
Reconfigure
Value Chain to
maximize
Value-Creating Activities and Differentiation
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Value-Creating Activities and Differentiation
•Highly developed MIS
•Emphasis on quality
•Delivery of products
•High quality replacement
parts
•Personal relationships
Differentiation Strategy: Competitors
•Defends against
Rivalry with
Differentiation Strategy: Buyers
• Can mitigate buyers’
Bargaining Power
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Bargaining
power of
buyers
Threat of
substitute
products
Differentiation Strategy: Suppliers
• Can mitigate suppliers’
power by:
Bargaining Power
of Suppliers
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buyers
products