The mission statement reflects the content, characteristics, values, and vision of a company, describing its fundamental principles that guide its business activities. It has a fundamental nature, …..
#8 Key Question: Why is a mission statement essential for international market leaders? Read More »
Differentiated companies such as premium brands are generally vulnerable to the threat from low-cost competitors due to the high price gaps between their products and those of low price rivals. ……
Successfully differentiated companies are capable of anchoring above-average attractiveness of their products in the perception of potential buyers over a long-term period of time, achieved through the functional and emotional value attributes of their offerings. Despite a premium pricing in comparison to competitors customers perceive the value attributes of the offering as unique and superior,
Low-cost providers establish their market position through price leadership over competitors of the same industry based on a superior cost structure. Despite their low-price strategy significant cost advantages allow these companies to achieve a higher profitability than competing high price positioned rivals in the same industry (e.g., airlines) . For this to happen the price
#5 Key Question: How do low-cost providers establish themselves in the market? Read More »
The company must differentiate itself from competition in terms of capabilities, cost efficiency and ability to create sustainable value surplus in the perception of its potential target customer groups through particularly attractive offerings. Four strategic core questions lead to a competitive offering capable of success: Which target groups should be addressed with which products in
#4 Key Question: What is the path to success driving competitive positioning? Read More »
Sustained competitive advantage in differentiation, customer surplus value and cost efficiency are the fundamental requirements for successful and long-term market engagement and are therefore the key criteria for selecting a business field. These success criteria must on one hand be predictably achievable within the given and future external market conditions of the potential new business
No two business enterprises are alike, yet they all follow the same path to the same goal: The economic principle of value creation maximization. From this principle, the stages that a company must go through on the path to market success are derived as follows: Read for mor information…
Three fundamental forces and their superior utilization in competition drive market success: Competitive differentiation, customer value, and cost efficiency. Competitive Differentiation and Customer Value The better a company can distinguish itself from its competitors, the greater its potential to create special value and benefits with its offering in the perception of its target customer groups,
#1 Key Question: What drives market success? Read More »
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