Guided by the competitive strategy of cost leadership , share your strategy

It's easy to say, it's easy to say. The biggest goal of a business is to make a profit.

There are two ways to make a profit, open source and throttling.

Open source, you didn't ask, I won't talk about it.

Throttling can be reflected in the following aspects:

First, reduce costs to the end; It's a value that is everywhere.

Second, the process cooperation between each process link and the link as each point of optimization. How?

Let everyone first propose the aspects that can be optimized in terms of their own personal scope of work; secondly, the optimization of the work process of the department itself; The third is the optimization of the coordination between departments.

To apply this method to everything you do, that is, to do everything you do, you have to reflect it. In this way, we can promote a benign corporate culture.

Third, people are still the key. The department head is the right and left hand of the boss, the link between you and the employees, not a simple upload and release, not a good gentleman, but to achieve the pursuit of the enterprise, is the key to find and solve the problem.

So, you want the method and the person who fulfills the method. That's all.

You can't have bad people in the business. Such a person will make the managers at the upper level become deaf and blind, and will naturally ruin the life of the enterprise.

Let's start with that. Life belongs to the practitioner, but also to the thinker.

200 points to do this, and it's not 20,000 yuan for others. Find it online yourself.

Where the cost is highest, there is the most room for compression. The inventory cost is the biggest hidden cost, and there are formulas such as economic order quantities for financial management, which can be applied to try. For the production and management departments, they can refer to the evaluation priorities in project management, list the process, the time and cost required, eliminate unnecessary processes, and compress the compressible time and cost.

Let's come in and get 2 points.

If you want to ask this, it is best to ask in what business forum, and there are many people who have business strategies in those places.

Cost leadership strategyExamples of businesses are as follows:

Xiaomi is a typical example of a cost leadership strategy, first of all, focusing on software research and development, outsourcing all hardware production, and reducing the cost of setting up factory production. Secondly, Xiaomi's marketing and sales channels.

Mainly through the Internet, compared with traditional mobile phones sold through physical dealers, reducing marketing costs and markups for dealers at all levels.

Through these avenues, Xiaomi gains a competitive advantage by making costs lower than those of its competitors. Moreover, while reducing costs, the Xiaomi team did not give up the quality of software and hardware, which allowed it to finally occupy a place in the mobile phone industry with a cost-leading strategy.

The cost leadership strategy refers to the company's emphasis on providing users with low-quality products at a low unit cost. It is a pre-emptive strategy that requires companies to have sustained capital investment and financing capabilities, and production skills to be at the forefront of the industry.

Cost leadership does not equate to minimum. If the enterprise falls into the misunderstanding that the lowest cost is not the lowest, it can only push itself into an endless war. Because, once the price is reduced, competitors will also reduce the price with Duan Qing, and because the cost is lower than their own, they have more room for price reduction and can support a longer time of ** war.

For example, in the case of televisions, achieving cost leadership requires a sufficiently large CRT production facility, low-cost design, automated assembly, and a global sales scale that is conducive to sharing the development costs.

In the security services industry, cost advantages require very low overheads.

The constant flow of cheap labor and the need for efficient training procedures due to high mobility, as well as the pursuit of low-cost manufacturer status, do not require more than just moving the learning curve downward.

It's about everything that has to be found and explored for cost advantages. Qi Ranchun.

The above content refers to: Encyclopedia - Cost Leadership Strategy.

The cost leadership strategy refers to the strategy of reducing the cost in the business process through effective ways and enabling the enterprise to win the competitive advantage with a lower total cost.

The competitive advantage of a cost depender is based on a lower total cost than the competition. The cost leadership strategy should make a certain business cost of the enterprise the lowest, because any strategy should include the content of cost control, it is the task of management, but not every strategy should pursue to become the lowest cost in the same industry.

According to Porter's thinking, the cost leadership strategy should be embodied as a low ** relative to the opponent, but this does not mean only obtaining a short-term cost advantage or simply cutting costs, but a concept of "controllable cost leadership". The key to the success of this strategy is to achieve a sustainable cost advantage over competitors while satisfying the product features and services that customers consider to be the most important, in other words, companies that implement a low-cost strategy must find the sustainability of the cost advantage** and be able to form an obstacle to prevent competitors from imitating the advantage, and this low-cost advantage will last.

Cost leadership strategy, also known as low-cost strategy, refers to a strategy in which enterprises can obtain competitive advantages on the basis of the analysis of the environment, competitors and their own value chains on the basis of a series of effective ways to reduce costs, so that the total cost of enterprises is lower than the cost of competitors or at the lowest cost level in the industry. In order to achieve the goal of reducing costs, enterprises need to strictly control costs in terms of management.

The implementation of the cost leadership strategy is the inevitable requirement of the development trend of modern enterprise production and operation activities, the inevitable result of modern market economy competition, and the guarantee of sustainable development of enterprises. The need to implement a cost leadership strategy:

1.The need for competition in the domestic market. Under the fierce competition of China's market economy, in order to survive and develop in the market competition, each enterprise has used its own different business strategies to serve itself.

However, in this process, our business operators seem to have entered a market "misunderstanding", paying too much attention to the competition in the field of market circulation, and ignoring the most essential aspect of market competition, that is, cost competition.

2.The need for competition in the international market. One of the basic trends of contemporary economic development is internationalization and global competition, and an enterprise can feel the pressure from international competition even if it does not leave home.

With the development of China's reform and opening up to today, the international challenges faced by enterprises are not only manifested in the increasing number of foreign commodities in the market, but also in the inflow of a large amount of international capital.

Regardless of the approach to achieving a cost leadership strategy, the following measures are indispensable:

1.This is the most important way to achieve mass production of products--- which is the most important way. The larger the production output, the lower the average unit cost; At the same time, with the expansion of scale, the tangible cost will be reduced, and the intangible cost will also be reduced, so mass production of products is the most important way to achieve cost leadership.

At present, China's automobile industry is not as good as Japan and South Korea in terms of cost, which has a lot to do with the scale. For example, FAW and Toyota both have 150,000 employees, FAW's output is 400,000 vehicles, and Toyota's is 5 million vehicles.

Cost leadership strategies are becoming more widely used with a better understanding of the effects of the empirical curve. It refers to the strategy of enterprises to become a cost leader in the industry by strengthening cost control internally, reducing costs to a minimum.

When enterprises adopt the cost leadership strategy, they should be soberly aware that it is not very easy to achieve the cost leadership strategy, because the cost is a comprehensive reflection of all aspects of the work of the enterprise, and the ability to reduce costs is closely related to the quality of the enterprise. At the same time, we should also pay attention to its weaknesses and take preventive measures as soon as possible to ensure the smooth implementation of the strategy.

The total cost leadership strategy refers to the company's efforts to minimize production costs and distribution costs to ensure that it can achieve a lower level than its competitors and win a huge market share.