Strategic management

course code : 20MBA25

Topic : Best cost
Faculty name : Kruthika s kumar
Designation : Assistant professor
 Best-cost provider strategy
Best cost provider strategy aim at giving customers more
value for the money. the objective
is to deliver superior value to buyers by satisfying their
expectations on key
quality/service/features/performance attributes & beating
the expectations on price.
From a competitive positioning stand point, best-cost
strategies are a hybrid, balancing a
strategic emphasis on low cost against a strategic
emphasis on differentiation (Superior value)
The target market is value-conscious buyers, perhaps a
very sizable part of the overall market.
Example-Toyota’s Best-cost producer strategy for its
Lexus line The pitfalls of a Best cost provider strategy.
The danger of accost provider strategy is that a company
using it will get squeezed between
The strategies of firm using low cost & differentiation
strategies.
Low-cost leaders may be able to grab customers away
with appeal of a lower price. High –
end differentiators may be able to steal customers away
with the appeal of better product attributes.
Sl Title of the Name of the Publisher Edition and
No book Author/s Name year

1 Crafting and Arthur A. McGraw Hill 19/e

Executing Thompson Jr. Education 2017
Strategy: Margaret A.
The Quest for Peteraf
Competitive John E.
Advantage – Gamble
Concepts and A. J. Strickland
Cases III
Arun K. Jain
2 Strategic Michael A. Hitt Cengage 9/e
Management: R. Duane Learning 2016
A South-Asian Ireland
Perspective Robert E.
Hoskisson
S. Manikutty
Thank you