Framework for Implementing Low-Cost Strategies PPT
This PPT slide, part of the 24-slide Low Cost Strategy PowerPoint presentation, 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 slide is part of the Low Cost Strategy PowerPoint presentation.
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