When your Competitors Delivers more for less

Robert J. Frank, Jeffrey P. George, and Luxman Narasimhan

Presented by: Anam Shaikh Amna Bapar Abdullah Junejo Agha Adnan

Companies offering the powerful combination

Low prices And High Quality
1. Not only capture the wallets of consumer but also the Hearts of the consumers. 2. The market share gains the value based players give their high-priced rivals define cause for alarm. 3. Succeeding in value based markets require infusing these timeless strategies with greater intensity and focus and then executing them flawlessly.

Values competitive edge

Two strength of value players in consumers market 1. 2. impressive cost advantage shift in consumer perception

McKinsey Research (Wal-Mart)

How far it will go?

 Lack of information can also constrain the growth of the value players by making its harder for them to communicate their value proposition.

Regulatory obstacles too can undercut a value players ability to develop and communicate compelling product or service offerings. example. The European Commission has investigated Ryanairs arrangements with some state-owned airports because of allegations that the deals violate European laws on state aid.

low-cost players have shown a remarkable ability to adapt and to gain consumer loyalty:

What does it mean for competition?

As competition becomes increasingly about differentiation and execution, CEOs will have to focus their organizations on rapid experimentation and innovation, the development of superior customer insights, effective pricing and promotions, and frontline efficiencies. The big challenges will be diagnosing where a companys capabilities fall short and then building these skills quickly. While spearheading change-management initiatives with relentless energy, senior managers should be prepared to think creatively about partnerships and alliances to acquire the needed talent

Differentiation
Differentiation? Walgreen focus on all elements of business. Store ubiquitous Easy Car parking on corner location. Walgreen increased products portfolio such as convince food & one hours photo session infront of store . Protected the sales of pharmacy through telephone & online ordering.

Differentiation
Walgreen profit : 15 billion to 32 billion in (1998to2002). Differentiation approach is not easy to New experiment or trial of any business just as: deltas low price airline services, total merril which offers investements product, insurance, morgates,lending, trust, estate planning, retierments products, & small business-services. Which is difficult to competitor to match low cast

Execution
Execution? systematic way of exposing reality and acting on it. They explain that the heart of execution lies in three core processes": 1. People 2. Strategy 3. Operations Kmart vs wallmart. Toyota low cost high quality.

Execution
Airline industry 25 to 50 % raised.

Financial (bank) services. Speed cheek processing and approval of mortgages.