Changing from a Cost Leadership Strategy Into Differentiation

      
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		            		Nguyen Anh Tuan, MBA
Management Consultant, Viet Nam
			            
Changing from a Cost Leadership Strategy Into Differentiation

	          		I'm wondering how enterprises which have a cost leadership strategy turn into a differentiation strategy. Please advise.
				      
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						            	Ching Yang
Teacher, United Kingdom
												
				                Re: Changing from a Cost Leadership Strategy Into Differentiation
Differentiation means doing things differently.

There is a common misunderstanding that differentiation means a different type of product or service. When a company does things differently, say like Toyota's just-in-time management. This helps Toyota manage its inventory and store cars more effectively than its competitors (basically when you compare a Toyota show room with it's competitors you will see a significant difference in the stock level and the resulting space used to store these cars).

So, in this case Toyota management of inventory is different from it's competitors.

But this change was brought about by Toyota in order to keep it's costs low - hence, why Toyota had to do "something" differently to achieve cost leadership. Another example is Walmart's SCM.
				                
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						            	Nguyen Anh Tuan, MBA
Management Consultant, Viet Nam
												
				                Chaging from a Cost Leadership Strategy Into Differentiation

													Thanks. Very good examples for a combined differentiation and cost leadership strategy from Toyota a... Sign up
				              
										              0

						            	Vishal Acharya
Consultant, India
												
				                Short Term versus Long Term

													Cost leadership may be achievable in a relatively short term and be better than competitors in many ... Sign up
				              
										              2

						            	Javier Elenes
Business Consultant, Mexico
												
				                How Turn Into a Differentation Strategy?. Delivering a Different AND BETTER VALUE Than Competition

													@Nguyen Anh Tuan: Any enterprise have two alternatives to be competitive:
1. Give the SAME VALUE at... Sign up
				              
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