Changing from a Cost Leadership Strategy Into Differentiation

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Competitive Advantage > Best Practices > Changing from a Cost Leadership Strategy Into Differentiation

Changing from a Cost Leadership Strategy Into Differentiation
Nguyen Anh Tuan, MBA, Management Consultant, Viet Nam, Member
I'm wondering how enterprises which have a cost leadership strategy turn into a differentiation strategy. Please advise. (...) Read more? Sign up for free

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  Re: Changing from a Cost Leadership Strategy Into Differentiation
Ching Yang, Teacher, United Kingdom, Member
  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, Member
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Competitive Advantage
Summary
Forum
Weaknesses of Porter's Three Basic Types of Competitive Advantage
Why are Firms Different? Why Successful Firms Differ?
🔥The Role of AI in Competitive Advantage
Best Practices
🥇Quotes Competitive Advantage
🥈10 Routes to Competitive Advantage
🥉Case studies in "Cost Leadership"
Stuck in the Middle?
How Can Logistics Help to Achieve a Competitive Advantage?
Changing from a Cost Leadership Strategy Into Differentiation
Competition versus Cooperation
Competitive Advantage or Die?
What is Competitive Advantage?
Competitive Advantage in a Monopolistic Market?
Life Cycle Approach to Competitive Advantage
Health/Fitness Club Industry Analysis
Focus your Efforts in Building Competitive Advantage
What are the Risks of a Differentiation Strategy?
Competitive Advantage in Tough Times
4 Stages of Hypercompetition
Knowledge Management is more important than CA
Cost and Value in Analysis of Competitive Advantage: 2 Sides of the Same Coin?
Successful Companies: Only Three Rules Needed?


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