دانلود رایگان مقاله چگوگی رقابت موثر در برابر رقبای کم هزینه

Abstract

Unlike older models of low-cost competition that were based on economies of scale, many new low-cost competitors have been able to be efficient at smaller sales levels due to a combination of the following strategies: producing ‘good enough’ products that provide extreme value by eliminating services that cost more than they are worth to consumers, utilizing simple business models, reducing research and development expenditures via joint ventures or through purchasing technology from bankrupt firms, using price cutting to drastically expand the market for a company’s goods and services, and having an organizational culture that stresses frugality and efficiency. This article exploresthe low-cost strategies of Aldi, Vizio, and Southwest Airlines to identify common elements. Four strategies that established competitors can use to respond to low-cost competition are presented: (1) waiting and watching, (2) deciding not to match new competitors’ price levels, (3) matching or coming close to low-cost competitors’ price levels, and (4) developing a new fighter brand or private label brand to be sold along with a company’s traditional brands.

5. Summary and conclusions

New low-cost innovators have succeeded using simplified business models based on low operating and capital costs, outsourcing, producing good enough products, and purchasing the rightto use technology rather than developing patents. In some cases, the price levels were so attractive that goods and services originally aimed at specialized markets became mass market-based, like Haier’s low-cost wine refrigerator. In other instances, the low-cost models resulted in consumers being willing to accept lower service levels as a trade-off for lower prices. Of the four competitive response strategies studied, wait and watch is the easiest to implement. While a long-term wait and watch time period enables existing firms to better understand a new competitor’s impact, it gives the new competitor ample opportunity to establish itself. The strategy of keeping a firm’s current price structure is most appropriate for markets characterized by strong brands in four situations: existing firms offer highly differentiated goods and services, products are complex, a large segment of consumers is not price conscious, and low price levels have little impact on expanding the overall market. Too many firms seek to match, as opposed to coming close to, low-cost competitors’ price levels. With a coming close strategy, an established firm should monitor low-cost competitors’ prices and determine an appropriate price premium based on its competitive advantages. Firms using the matching pricing strategy need to recognize the difficulties in matching the cost structure of their newer low-cost competitors. Unlike the new entrant, the traditional firm may have contractual relationships with vendors including unions, property owners, and suppliers; a corporate culture based on full service and very high levels of product quality; and complicated and costly business models. In addition, its assets may be tied to specific technologies, tasks, products, and locations.