This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
This product (Low Cost Strategy) is a 24-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.
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.
This PPT slide presents a structured overview of low-cost strategies, detailing common traits and examples that organizations can leverage. It is divided into several key components: target segments, value proposition, product or service offering, revenue model, value chain, cost model, and organization.
Target segments emphasize the importance of focusing on a specific group of price-sensitive customers. It suggests defining segment borders clearly and understanding their priorities and business economics. This targeted approach is crucial for tailoring offerings that resonate with these customers.
The value proposition section outlines the need for a compelling product or service offering. It recommends designing an appealing new offer that is simple and uniform, eliminating unnecessary features while maintaining high service standards. Establishing a strong brand presence is also highlighted to build trust.
In terms of revenue model, the slide indicates a pricing strategy centered on basic core value, with options for additional charges. This approach allows for flexibility while keeping the primary offering attractive to cost-conscious consumers.
The value chain segment stresses the alignment and optimization of assets, differentiating between core and non-core activities. It encourages companies to assess what should be kept in-house versus outsourced, relying on standardized assets to maintain efficiency.
The cost model focuses on achieving low costs across the entire value chain, suggesting that sourcing and distribution strategies should align with cost targets.
Finally, the organization component emphasizes designing for operational efficiency, limiting overhead, and fostering a culture that supports entrepreneurial thinking. This holistic view of low-cost strategies provides actionable insights for executives aiming to enhance their organization's efficiency and market positioning.
This PPT slide presents an overview of common traits associated with successful low-cost strategies. It emphasizes the importance of alignment between the value proposition and the operational elements of an organization. The text suggests that effective low-cost strategies are not one-size-fits-all; rather, they share key characteristics that contribute to operational efficiency.
The slide is structured into 2 main sections: Value Proposition and Operating Model. Under the Value Proposition, 3 critical components are highlighted: target segments, product or service offerings, and revenue models. These elements are interconnected, indicating that a well-defined value proposition is essential for targeting the right customers and delivering appropriate offerings.
The Operating Model section includes the value chain, cost model, and organization. This suggests that the operational framework must support the low-cost strategy by optimizing processes and resources. The slide implies that organizations need to consider how their cost structure and organizational setup can enhance their low-cost approach.
The narrative also hints at the flexibility inherent in low-cost strategies, allowing organizations to explore various options tailored to their specific contexts. This adaptability is crucial for companies aiming to transform their service offerings while maintaining a focus on cost efficiency.
Overall, the slide serves as a foundational guide for organizations looking to implement low-cost strategies. It encourages a comprehensive understanding of how value propositions and operational models must work in harmony to achieve desired outcomes.
This PPT slide addresses prevalent misconceptions surrounding low-cost strategies, presenting 4 key myths that often mislead executives and decision-makers. The first point clarifies that low-cost strategies are not synonymous with low margins. It cites examples like McDonald's and Ryanair, indicating that these companies successfully leverage low-cost models to achieve substantial profits, challenging the assumption that lower prices equate to reduced profitability.
The second myth tackled is the notion that low cost implies low quality. The slide counters this by suggesting that low-cost offerings can still maintain quality, exemplified by limited range options like the Ford Model T, which revolutionized the automotive industry without sacrificing reliability.
Next, the slide disputes the idea that low-cost strategies are merely about imitation. It emphasizes that true innovation is at the core of successful low-cost models, again referencing industry leaders such as Ford and McDonald's. This highlights that effective low-cost strategies often stem from creative solutions rather than mere replication of existing models.
Finally, the slide asserts that low-cost business models do not go unrecognized. It points out that these models are often associated with strong brands, using the Ford Model T and the Big Mac as examples. This suggests that successful low-cost strategies can create significant brand equity, contrary to the belief that they lack visibility or recognition in the market.
Overall, this slide serves as a critical reminder for executives to reevaluate their understanding of low-cost strategies and consider the nuanced realities that drive success in this area.
This PPT slide discusses the contrasting approaches of traditional organizations versus smart low-cost players in the context of innovation and market targeting. Traditional organizations often fall into the "Innovation Trap," where their R&D departments prioritize developing new products that are more sophisticated and expensive than existing offerings. This mindset leads to a cycle where new launches are viewed as midrange or bottom-tier, ultimately discounting previous releases. Such a strategy can hinder growth and limit market reach, particularly among lower-income segments.
In contrast, smart low-cost players focus on innovation by specifically targeting the vast low-income population segments. They leverage the latest technologies and innovative business models to create products that resonate with this demographic. This approach allows them to effectively compete against traditional players who may be stuck in outdated practices.
The slide emphasizes the importance of not engaging in price wars or merely offering low-cost substitutes. Instead, organizations should refine their own models and explore innovative strategies that align with low-cost business principles. This proactive stance is essential for maintaining competitiveness and unlocking new growth avenues.
The content encourages executives to rethink their innovation strategies and consider how they can adapt to the changing market dynamics driven by low-cost competitors. It highlights the necessity for a shift in perspective regarding product development and market engagement, urging leaders to embrace a more agile and customer-focused approach.
This PPT slide outlines key characteristics of low-cost strategies, divided into 2 main sections: Value Proposition and Operating Model.
In the Value Proposition segment, the focus is on identifying target segments that are price-sensitive. It emphasizes the importance of clearly defining these segments and understanding their specific priorities and business economics. This understanding is critical for tailoring offerings effectively. The Product or Service Offering section suggests that businesses should create a compelling new offer that resonates strongly with these segments. Simplicity and uniformity are highlighted as essential elements, along with the need to eliminate unnecessary features. Establishing high core-service standards is also crucial for supporting the overall value proposition, while branding plays a role in building presence and trust with customers. The Revenue Model emphasizes pricing strategies that focus on delivering basic core value, advocating for the elimination of frills and charging for additional options.
The Operating Model section discusses the alignment and optimization of the value chain. It suggests that organizations should clearly distinguish between core and non-core activities, determining what functions to keep in-house versus what to outsource. Utilizing standardized assets is recommended wherever feasible. The Organization subsection stresses the need for operational efficiency, advocating for limiting overhead and adopting innovative human resource policies. Matching new hires with appropriate job profiles is also essential for maintaining effectiveness. Lastly, the Cost Model section emphasizes achieving low costs throughout the entire value chain, from sourcing to distribution. This comprehensive approach ensures that all aspects of the business are aligned with the low-cost strategy.
Overall, the slide provides a structured framework for organizations aiming to implement low-cost strategies effectively.
This framework is developed by a team of former McKinsey and Big 4 consultants. The presentation follows the headline-body-bumper slide format used by global consulting firms.
For $10.00 more, you can download this document plus 2 more FlevyPro documents. That's just $13 each.
ABOUT FLEVYPRO
This document is part of the FlevyPro Library, a curated knowledge base of documents for our FlevyPro subscribers.
FlevyPro is a subscription service for on-demand business frameworks and analysis tools. FlevyPro subscribers receive access to an exclusive library of curated business documents—business framework primers, presentation templates, Lean Six Sigma tools, and more—among other exclusive benefits.
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.
Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
Read Customer Testimonials
"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.
Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I
have been able to exceed expectations and deliver quality advice and solutions to my clients. The quality and expertise of the authors are exemplary and gives me great confidence to use as part of my service offerings.
I highly recommend this company for any consultant wanting to apply international best practice standards in their service offerings.
"
– Nishi Singh, Strategist and MD at NSP Consultants
"I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."
– Trevor Booth, Partner, Fast Forward Consulting
"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.
The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."
– Dennis Gershowitz, Principal at DG Associates
"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact
that it is not at all just a repository of documents/resources but, in the way that David and his team manage the firm, it is like dealing with consultants always ready to assist, advise and direct you to what you really need, and they always get it right.
I am an international hospitality accomplished senior executive who has worked and lived during the past 35 years in 23 countries in 5 continents and I can humbly say that I know what customer service is, trust me.
Aside from the great and professional service that Flevy's team provide, their wide variety of material is of utmost great quality, professionally put together and most current.
Well done Flevy, keep up the great work and I look forward to continue working with you in the future and to recommend you to a variety of colleagues around the world.
"
– Roberto Pelliccia, Senior Executive in International Hospitality
"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"
– Debbi Saffo, President at The NiKhar Group
"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I
saved. I encountered a download issue during the ordering process. However, a quick email to Flevy's support team, even on a Sunday (!!!), resulted in assistance within less than an hour, allowing me to download the content I needed. Fantastic job, Flevy! I give 5 stars for both content/price and customer service. Thank you!
"
– M. E., Chief Commercial Officer, International Logistics Service Provider
"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."
– David Coloma, Consulting Area Manager at Cynertia Consulting
"My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S, Balanced Scorecard, Disruptive Innovation, BCG Curve, and many more.