Low Cost Strategy (PowerPoint PPT Slide Deck)

STRATEGY DEVELOPMENT PPT DESCRIPTION

Explore a comprehensive Low Cost Strategy framework by ex-McKinsey and Big 4 consultants. Gain insights on operating models, value propositions, and market dynamics. Low Cost Strategy is a 24-slide PPT PowerPoint presentation slide deck (PPT) available for immediate download upon purchase.

Explore Slides inside the Deck:

Framework for Effective Low-Cost Strategy Implementation Debunking Myths of Low Cost Strategies Key Traits of Effective Low-Cost Strategies

Based on the success in the rapidly developing economies (RDEs), Low Cost Strategy players are now increasingly becoming a norm in the developed world. Large organizations are initiating new cost strategies and applications in the developed world with a "low cost" value proposition designed for RDEs.

This deck expounds on how innovative low cost players are spending in innovation targeted at the large, low income segments of the population.

A Low Cost Strategy is based on an integrated model with availability of 6 elements across the areas of Operating Model and Value Proposition:

OPERATING MODEL
1. Target Segments
2. Product of Service Offering
3. Revenue Model

VALUE PROPOSITION
4. Value Chain
5. Cost Model
6. Organization

Other topics covered in the deck include Common Traits among Low Cost Strategies, Low Cost Strategy Myths, Low Strategies in Emerging vs. Established Markets, the Denial Trap, the Innovation Trap, range simplification, general perceptions about the LBMs, and success stories from the RDEs and developed economies.

This deck also includes slide templates for you to use in your own business presentations.

This presentation delves into the historical evolution of Low Cost Strategies, showcasing how pivotal innovations like the printing press and assembly line have revolutionized cost structures. It highlights the strategic shifts multinational corporations are making to compete with low-cost disruptors by adopting new price points and streamlined offerings. The PPT also explores the common misconceptions surrounding Low Cost Strategies, emphasizing that they can indeed coexist with high margins and quality.

The framework provides actionable insights into how companies can avoid the Denial and Innovation Traps when competing against low-cost players. It includes case studies of successful low-cost innovations through both organic development and acquisitions, offering a balanced perspective on strategic growth. This deck is an invaluable resource for executives looking to refine their cost strategies and drive sustainable growth in both emerging and established markets.

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STRATEGY DEVELOPMENT PPT SLIDES

Framework for Effective Low-Cost Strategy Implementation

This PPT slide outlines low-cost strategies, focusing on key components: target segments, value proposition, revenue model, value chain, cost model, and organization. Target segments highlight the need to define price-sensitive customer groups and understand their business priorities. The value proposition emphasizes creating a compelling, simple product offering while maintaining high service standards and strong brand presence. The revenue model suggests a pricing strategy based on core value with options for additional charges, appealing to cost-conscious consumers. The value chain stresses optimizing core versus non-core activities and deciding between in-house and outsourced functions. The cost model advocates for low costs across the value chain, aligning sourcing and distribution with cost targets. Finally, the organization component focuses on operational efficiency, limiting overhead, and fostering entrepreneurial thinking.

Debunking Myths of Low Cost Strategies

This PPT slide addresses misconceptions about low-cost strategies, presenting 4 key myths. First, low-cost strategies are not synonymous with low margins; companies like McDonald's and Ryanair leverage low-cost models to achieve substantial profits. Second, low cost does not imply low quality, as exemplified by the Ford Model T, which maintained reliability while revolutionizing the automotive industry. Third, successful low-cost strategies are rooted in innovation, not imitation, as demonstrated by industry leaders like Ford and McDonald's. Finally, low-cost business models can create strong brand equity, as seen with the Ford Model T and the Big Mac, countering the belief that they lack market visibility.

Key Traits of Effective Low-Cost Strategies

This PPT slide outlines common traits of successful low-cost strategies, emphasizing the alignment between value proposition and operational elements. Key components of the Value Proposition include target segments, product or service offerings, and revenue models, which are interconnected for effective customer targeting. The Operating Model encompasses the value chain, cost model, and organizational structure, indicating that these frameworks must optimize processes to support a low-cost strategy. Flexibility in low-cost strategies allows organizations to tailor approaches to specific contexts, enhancing cost efficiency while transforming service offerings. Understanding the harmony between value propositions and operational models is essential for implementing low-cost strategies effectively.

Innovative Strategies for Targeting Low-Income Segments

This PPT slide contrasts traditional organizations with smart low-cost players in innovation and market targeting. Traditional firms often fall into the "Innovation Trap," where R&D focuses on developing sophisticated, expensive products, leading to a cycle of midrange or bottom-tier new launches that discount previous offerings. This strategy can limit growth and market reach among lower-income segments. In contrast, smart low-cost players target low-income populations by leveraging innovative technologies and business models, effectively competing against traditional players. Organizations should avoid price wars and low-cost substitutes, instead refining their models and exploring innovative strategies aligned with low-cost principles to maintain competitiveness and unlock new growth avenues.

Framework for Implementing Low-Cost Strategies

This PPT slide outlines key characteristics of low-cost strategies, focusing on 2 main sections: Value Proposition and Operating Model. In the Value Proposition, businesses must identify price-sensitive target segments and understand their priorities. A compelling product offering should resonate with these segments, emphasizing simplicity, uniformity, and high core-service standards. The Revenue Model advocates for pricing strategies that deliver basic core value, eliminating unnecessary features and charging for additional options. The Operating Model discusses optimizing the value chain by distinguishing core from non-core activities and utilizing standardized assets. It stresses operational efficiency, limiting overhead, and matching new hires with job profiles. The Cost Model emphasizes achieving low costs throughout the value chain, ensuring alignment with the low-cost strategy.

Source: Best Practices in Strategy Development, Value Proposition, Operating Model, Low Cost Strategy PowerPoint Slides: Low Cost Strategy PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting