Stanford Webinar - Winning Strategies to Beat Low Cost Competitors

In this webinar, we will introduce a simple conceptual framework to help executives and managers think about the possible ways their companies can respond to the low cost challenge. Should they confront the LCCs in their market segments and/or distance the business from LCCs by opening up a performance leadership gap (significantly better products or services) and/or distance the business from low cost competitors by building deep and intimate relationships with customers? We will look at examples of companies who have implemented one or more of these strategies and the challenges they have faced in implementing the chosen options.

Introduction.
Value propositions have three core elements.
Products and services emphasizing relational value and price value typically capture a growing share of the market over time.
Companies have three basic options for responding to low cost competition.
Move into lower tiers of the market and challenge directly (either through organic growth or acquisition).
Gillette (P&G) has been successful at increasing performance value over time.
Option 2: Distance business from low cost competitors by increasing performance value.
A DSP example from the petrochemical industry.
SKF has had to make a number of acquisitions to enable it to create better solutions for customers.
Distance business from low cost competitors by increasing relational value.
Orica's response was to offer customers blasting solutions.
Low cost competition is a big and growing challenge for many leading companies and it won't go away and you must respond to it!.