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Are low-cost businesses a permanent, enduring threat? A business that sells at prices dramatically lower than other competitors must go bankrupt
Interestingly, low-cost companies stay ahead of market leaders, if a bu siness gets a customer to buy its products or services on the basis of pr ice, it will lose the customer only if a rival offers a lower price The discounters win all their customers because of the prices they offe r, they dont have to worry about traditional rivals that always charge premiums
Switching to Conquer
Switch to Solutio ns:
Offering products an Hard to evaluate the quality of the s olutions, d services as an integ Deep understanding of the customer rated package, comp s business processes costly to cha anies can expand the nge suppliers segment of the mark Low-cost players have limited produ ct ranges and service capabilities, th et that is willing to p ey cannot offer solutions ay more for addition Key successful factors al benefits.
Working with customers to understa nd their problems before designing s olutions. Manage customers processes and in crease their revenues or lower their c osts and risks
Advantages: