In topic 4, we discussed cost-leadership as a means of achieving a competitive advantage. Specifically, the top 10 areas for achieving these efficiencies were presented (see Cost-Efficient Management of the Value Chain discussion of topic 4 PPT). In your opinion of what you now know about cost suppression as a competitive strategic priority, which three (3) of these top 10 are the most important to achieving a cost advantage AND how would a firm implement these efficiencies in a way that makes each one difficult to imitate by competition. Offer separate imitation discussions for each of the 3 initiatives. I do realize that these three discussions might have some ideas/arguments in common. Please feel free to answer (although you are not required to do so) this question from the standpoint of your current firm, the firm for which you worked in the past, and/or the firm you have chosen to analyze for your project.
The 10 areas for these efficiencies are:
1. Striving to capture all available economies of scale
2. Taking advantage of learning/experience curve effects
3. Trying to operate facilities at full capacity
4. Pursuing efforts to boost sales volumes and spread R&D and SG&A costs over more units
5. Improve supply chain efficiency
6. Substituting the use of low-cost for high-cost raw materials or component parts
7. Using online systems and software to achieve operating efficiencies
8. Adopting labor-saving operating methods
9. Using the company's bargaining power vis-a-vis suppliers
10. Being alert to the cost advantages of outsourcing and vertical integration.
Following three (3) are the strategies and ways firms can use in achieving cost advantage:
In topic 4, we discussed cost-leadership as a means of achieving a competitive advantage. Specifically, the...
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