In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve). A cost leadership strategy aims to exploit scale of production, well-defined scope and other economies (e.g., a good purchasing approach), producing highly standardized products, using advanced technology. In recent years, more and more companies have chosen a strategic mix to achieve market leadership. These patterns consist of simultaneous cost leadership, superior customer service and product leadership.
Cost leadership is different from price leadership. A company could be the lowest cost producer yet not offer the lowest-priced products or services. If so, that company would have a higher than average profitability. However, cost leader companies do compete on price and are very effective at such a form of competition, having a low cost structure and management.
The concept of cost leadership was developed by Michael Porter.
Almost one in four American working adults has a job that pays less than a living wage. ConvenÂtional wisdom says thatâs how the world has to work. Bad jobs with low wages, minimal benefits, little training, and chaotic schedules are the only way companies can keep costs down and prices low. If companies were to offer better jobs, cusÂtomers would have to pay more or companies would have to make less.
But in The Good Jobs Strategy, Zeynep Ton, a professor at the MIT Sloan School of Management, makes the compelling case that even in low-cost settings, leaving employees behindâwith bad jobsâis a choice, not a necessity. Drawing on more than a decade of research, Ton shows how operational excellence enables companies to ofÂfer the lowest prices to customers while ensuring good jobs for their employees and superior results for their investors.
Ton describes the elements of the good jobs strategy in a variety of successful companies around the world, including Southwest Airlines, UPS, Toyota, Zappos, and In-N-Out Burger. She focuses on four model retailersâCostco, MercaÂdona, Trader Joeâs, and QuikTripâto demonstrate the good jobs strategy at work and reveals four choices that have transformed these compaÂniesâ high investment in workers into lower costs, higher profits, and greater customer satÂisfaction.
Full of surprising, counterintuitive insights, the book answers questions such as: How can offering fewer products increase customer satÂisfaction? Why would having more employees than you need reduce costs and boost profits? How can companies simultaneously standardize work and empower employees?
The Good Jobs Strategy outlines an invaluable blueprint for any organization that wants to purÂsue a sustainable competitive strategy in which everyoneâemployees, customers, and investorsâwins.
A practical approach to business transformation
Fit for Growth* is a unique approach to business transformation that explicitly connects growth strategy with cost management and organization restructuring. Drawing on 70-plus years of strategy consulting experience and in-depth research, the experts at PwCâs Strategy& lay out a winning framework that helps CEOs and senior executives transform their organizations for sustainable, profitable growth. This approach gives structure to strategy while promoting lasting change. Examples from Strategy&âs hundreds of clients illustrate successful transformation on the ground, and illuminate how senior and middle managers are able to take ownership and even thrive during difficult periods of transition. Throughout the Fit for Growth process, the focus is on maintaining consistent high-value performance while enabling fundamental change.
Strategy& has helped major clients around the globe achieve significant and sustained results with its research-backed approach to restructuring and cost reduction. This book provides practical guidance for leveraging that expertise to make the choices that allow companies to:
Sustainable success is founded on efficiency and high performance. Companies are always looking to do more with less, but their efforts often work against them in the long run. Total business transformation requires total buy-in, and it entails a series of decisions that must not be made lightly. The Fit for Growth approach provides a clear strategy and practical framework for growth-oriented change, with expert guidance on getting it right.*Fit for Growth is a registered service mark of PwC Strategy& Inc. in the United States
The New York Times bestselling author of Reality-Based Leadership rejects the current fad of "engaging" employees and the emotional drama of "meeting their needs"--returning leadership to leaders and productivity to businesses.
For years now, leaders in almost every industry have accepted two completely false assumptions--that change is hard, and that engagement drives results. Those beliefs have inspired expensive attempts to shield employees from change, involve them in high-level decision-making, and keep them happy with endless "satisfaction surveys" and workplace perks. But what these engagement programs actually do, Cy Wakeman says, is inflate expectations and sow unhappiness, leaving employees unprepared to adapt to even minor changes necessary to the organization's survival. Rather than driving performance and creating efficiencies, these programs fuel entitlement and drama, costing millions in time and profit.
It is high time to reinvent leadership thinking. Stop worrying about your employees' happiness, and start worrying about their accountability. Cy Wakeman teaches you how to hire "emotionally inexpensive" people, solicit only the opinions you need, and promote self-awareness in your whole team. No Ego disposes with unproven HR maxims, and instead offers a complete plan to turn your office from a den of discontent to a happy, productive place.
With rare insight, expert technology strategist Peter High emphasizes the acute need for IT strategy to be developed not in a vacuum, but in concert with the broader organizational strategy. This approach focuses the development of technology tools and strategies in a way that is comprehensive in nature and designed with the concept of value in mind. The role of CIO is no longer "just" to manage IT strategyâinstead, the successful executive will be firmly in tune with corporate strategy and a driver of a technology strategy that is woven into overall business objectives at the enterprise and business unit levels.
High makes use of case examples from leading companies to illustrate the various ways that IT infrastructure strategy can be developed, not just to fall in line with business strategy, but to actually drive that strategy in a meaningful way. His ideas are designed to provide real, actionable steps for CIOs that both increase the executive's value to the organization and unite business and IT in a manner that produces highly-successful outcomes.
While function, innovation, and design remain key elements to the development and management of IT infrastructure and operations, CIOs must now think beyond their primary purview and recognize the value their strategies and initiatives will create for the organization. With Implementing World Class IT Strategy, the roadmap to strategic IT excellence awaits.
Reputation Strategy and Analytics in a Hyper-Connected World is a complete guide to corporate communications and reputation management. Covering a range of scenarios from ideal to catastrophic, this book provides a clear blueprint for preparation, execution, and beyond. The discussion focuses on data-driven, evidence-based strategies for the modern digital economy, providing actionable frameworks, practical roadmaps, and step-by-step blueprints for deploying advance analytics, predictive modeling, and big data techniques to successfully manage communications and reputation. You'll learn how the right tools and people get the job done quickly, effectively, and cost-effectively, and how to identify and acquire the ones you need. Coverage includes the latest technology and cutting-edge applications, bringing you up to speed on what excellence in communications can realistically be.
We live in an age of interconnectedness and transparency, and information travels at the speed of light to reach nearly every corner of the globe. This book shows you the key strategies and operational tactics required to respond successfully to financially damaging assaults on your company's reputation.
Stories, rumors, lies â there is no safe haven. Big data, cloud, and mobile technologies are fueling a perfect storm of immense proportions, overwhelming the capabilities of organizations and individuals attempting to manage their brands and reputations when hit with damaging information or harmful stories. Reputation Strategy and Analytics in a Hyper-Connected World shows you navigate the never-ending information stream to keep your company out of the undertow.
The bestselling Purchasing ChessboardÂ® concept, used by hundreds of corporations worldwide to reduce costs and increase value with suppliers, is the topic of this successful professional book now published in its third edition. The 64 squares on the Purchasing Chessboard provide a wealth of methods that can be applied either individually or in combination. And because many of these methods are not customarily used by procurement, the Purchasing Chessboard is also the perfect tool for helping procurement professionals to think and act outside the box and find new solutions. A well tested concept that works across all industries and all categories in any given situation, it is little wonder that business leaders and procurement professionals alike are excited by, and enjoy strategizing around, the Purchasing Chessboard. It encourages greater rigor and creativity and the building of world class capabilities.
The explosive growth in analytics and the rise in the number of specialists in procurement practice have taken the application of the Purchasing Chessboard to new levels. This third edition of the book includes a rich assortment of case examples to reflect the lessons learned across geographies and industries. Some of the chapters have also been updated to accurately reflect these trends.