Different production strategies
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The document discusses various business strategies that companies can employ, including differentiation, cost leadership, market segmentation, price/cost, quality, delivery, product mix, service, eco-friendly products, flexible response, and low cost strategies. It provides details on how each strategy can be implemented and what advantages or disadvantages certain strategies may have. The overall strategies discussed are aimed at making a company competitive by standing out from competitors, reducing production costs, targeting specific customer segments, or selling products at low prices.
Different production strategies
- 1. By:- P. Joel Prakash 15N31E00H0 2015-17 MALLA REDDY COLLEGE OF ENGINEERING &TECHNOLOGY
- 3. Differentiation strategy Cost leadership strategy Market segmentation strategy
- 4. Under a differentiation strategy, the company tries to be different and unique from its competitors. More features and facilities in its product Flexible while dealing with its customers Quick and better delivery of its products
- 5. Under a Cost Leadership Strategy, the company tries to reduce its cost of production Producing goods on a very huge scale by this strategy benefits of economies of large scale. Scale of Production Cost of Production Cost of Raw material Labour, Advertising Sales Promotion, R & LOWER HIGHER
- 6. Under market segmentation strategy, the company divides the market according to the type of customers it has to focus and target. Different products and services to different types of customers The needs of the customers
- 7. Price /Cost strategy Quality strategy Delivery strategy Product mix or flexibility strategy Service strategy Eco-friendly products
- 8. Under price or cost strategy, the company sells its product at a very low price.This type of strategy is used in these: Products are homogeneous (same) in nature. Customers cannot distinguish the company's product from the competitor’s products.
- 9. Under Quality strategy, the company produces and sells high-quality goods and services. Pro’s: Prices of such goods and services are naturally very high Attract customers who prefer top quality products. Con’s: Products which are designed badly will naturally fail in the markets. Precautions: Special attention to the design of its products. Upgrade product design such as add new product features to satisfy the current needs and demands of its customers
- 10. Under delivery strategy, the company delivers its product and services to their customers as early as possible that too within a fixed time period. Speed delivery of products and fastest accessibility Delivery strategy is used as a selling tactic to fight cut-throat competition.
- 11. Under this strategy, the company produces and sells a product mix(a group of products, which are sold by the same company) Survival and growth in market. Only large companies with huge production capacity can use this strategy.
- 12. Under this strategy, the company uses a service to attract the customers. Service is required for both consumer goods as well as industrial goods. Quicker and better after-sales service. Around the clock Service directly or indirectly
- 13. Under eco-friendly strategy, the company produces and sells environment-friendly products also called as Green Products. Reduce pollution Protect the biosphere Use biodegradable packing material to reduce package cost also. Informs the public about their environment- friendly manufacturing approach through advertisements.
- 14. Flexible response strategy Low cost strategy
- 15. Flexible response strategy is said to be used when a company makes necessary changes in its production plans that too in accordance with the emerging changes in the market. Speed and reliability Changes as per the arising changes in the market demand Regular supply of goods to its customers. Follow Strict Production Schedule.
- 16. Under low cost strategy, the company fights massive market competition by selling its products at very lower prices & also maintain the quality of its products Sell its goods at minimum prices if it maintains a Low cost of production and distribution. Producing and distributing goods on a large scale. Company must take advantage of economies of large-scale production.