Monday, May 17, 2010

Cost leadership strategy

Books 2 Byte
Strategic Management
Chris Jeffs

Studying the value chain

How do you add value in a service organisation? A simple answer is to respond quickly and efficiently to customer's needs, says Chris Jeffs in Strategic Management. “In the case of an organisation which is following a cost leadership strategy, the value chain will be optimised for high efficiency, low waste or re-work. In the case of an organisation following a differentiation strategy, the emphasis is likely to be on research, development, and marketing.”


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