Strategies to Fight Low Cost Rivals

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In this new era, which global industry is growing very fast, it makes most company everywhere in the world trap on war of price. Most companies should invest a lot of money, people, and time to fight they rivals .Last but not Least, each company has to grow with a right strategy.

The steps to get the best strategy on the Price War situation is strategy development and implementation : A. Critical Success Factors :
1. Environmental Analysis
- identify SWOT
- understand the environment, customers ,industry, and competitors 2. Determine Corporate Mission
- state the reason for the firm’s existence and identify the value it wishes to create
3. Form a strategy
- build a competitive advantage, such as low price, design or volume flexibility, quality, quick delivery, dependability, after-sales services, broad product lines, differentiation, flexibility, etc

Choose The Strategy (3 strategies that relevant through the Price War Situation •Differentiation (defense), ex : STARBUCKS
Low Cost Leadership (attack), ex : EasyShare, Southwest
Wait and watch / Competing on Response (attack and defense)à Full of flexibility, ex : ING, HSBC Then it’s time to achieving competitive advantage through Operations as the part of the Functional Areas  Core Competencies

B. Core Competencies :
Support a core competence and implement strategy by identifying and executing the critical success factors in the functional areas :
1.Marketing = 4P+Service+Chanels distributions
2.Finance/Accounting = Leverage, cost of capital, working capital, receivables, payables, financial control, lines of credit 3.Operations = 10 OM decisions
(Product,quality,process,location,layout,human resource,supply chain, inventory,schedule,maintenance)
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