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Girish Ketkar, India
"Are there any recent case studies to demonstrate how firms can compete on the basis of cost leadership?"
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Common Cost Leadership Strategy Error
Joao Viggiani, Brazil
"Undeveloped countries often fall into a trap: entrepreneurs confuse low cost strategies with slave-like labor conditions - absurdly low wages and stressing working conditions - to allow for the practice of low prices. This is most wrong. Low cost is obtained by highly productive work force and installations, highly efficient processes and large production and sales scales. Theses conditions are seldom found in companies in low developed countries such as Brazil, India and specially African countries. These misleading ideas end up in poverty, not in the creation of wealth, which is the utmost objective of effective managers." |
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Kenyan Cost Leadership Example
George Ocarl, Kenya
"In Kenya we have an excellent example of cost leadership in the telephony industry where one service provider (Airtel) lowered the cost of making calls drastically and outdid their competitors( Safaricom and others) within months. By applying the cost leadership strategy it gained 86% popularity within months and is still ahead. It is effective if you don't compromise the quality." |
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