Cost leadership is a concept developed by Michael Porter and utilised in business strategy. It describes a way to establish the competitive advantage. Cost leadership, basically, means 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.
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.
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.
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