Enterprise Management: Five Profitable Strategies Commonly Used By Enterprises

< p > Product Differentiation brings higher profits, which can be used to deal with supplier pressure and relieve buyer pressure.

When customers lack the choice, their price sensitivity is not high.

Finally, the company that wins the customer loyalty by adopting differentiation strategy is more advantageous than other competitors when facing the threat of substitutes.

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< p > strong > 1, < a href= "http://sjfzxm.com//business/" > differentiation < /a > /strong > /p >

< p > Product Differentiation brings higher profits, which can be used to deal with supplier pressure and relieve buyer pressure.

When customers lack the choice, their price sensitivity is not high.

Finally, the company that wins the customer loyalty by adopting differentiation strategy is more advantageous than other competitors when facing the threat of substitutes.

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Product differentiation is sometimes contradictory to striving to occupy a larger market share. < p >

It often requires the company to be prepared for the exclusion of this strategy, that is, both the strategy and the market share can not be taken into account.

More generally, it is always costly to set up differentiated activities, such as extensive research, product design, high quality materials, and thorough customer service.

The realization of product differentiation will mean cost at the cost.

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< p > If a href= "http://sjfzxm.com//business/" > differentiation < /a > strategy is successfully implemented, it will become a positive strategy to win a high level of income in an industry, because it establishes a defensive position against five competitive forces, though its defensive shape and cost lead differently.

Potter believes that the implementation of differentiation strategy will sometimes contradict activities that seek to occupy a larger share of the market.

The implementation of differentiation strategy often requires companies to be prepared for the exclusion of this strategy.

This strategy should not be taken into account in raising market share.

There is always a high cost price in establishing a company's differentiation strategy. Sometimes, even if the customers in the whole industry understand the unique advantages of the company, not all customers will be willing or able to pay the high price demanded by the company.

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< p > < strong > two, low cost < /strong > < /p >

< p > > a href= "http://sjfzxm.com//business/" > cost > /a > leading strategy (also known as low cost strategy) cost leadership strategy is perhaps the most clear among the three general strategies.

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Enterprises operate in a wide range and serve many industrial sectors, and may even run businesses belonging to other related industries.

The operation of an enterprise often plays a decisive role in its cost advantage.

The source of cost advantage varies from industrial structure.

They can include economies of scale, patented technology, preferential treatment of raw materials and other factors.

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< p > when the cost of a leading enterprise is equivalent to or lower than that of its competitors, its low cost status will be turned into high yield.

Although a cost leading enterprise relies on its leading position in cost to gain a competitive advantage, and if it wants to become a super economic person with an average economic benefit, it must have a similar value or value in comparison with its competitors.

The success of the cost leadership strategy depends on the skill of the enterprise implementing the strategy day after day.

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< p > cost leadership is not the same as the lowest price.

If the enterprise falls into the misunderstanding of the lowest price and the lowest cost, it can only push itself into endless price war.

Because once the price is cut, competitors will also reduce prices, and because of their lower cost than themselves, they will have more room to reduce prices and support longer price wars.

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< p > < strong > three, focusing < /strong > /p >

< p > cost leadership strategy and differentiation strategy face the whole industry and carry out activities within the scope of the whole industry.

The centralized strategy is concentrated on a specific goal of production and operation activities, requiring more effective services than competitors.

Once a target market is chosen, a centralized strategy can be formed through product differentiation or cost leadership.

That is to say, a company adopting a focused centralized strategy is basically a special differentiation or special cost leading company.

Because the size of such companies is small, companies adopting centralized strategies often can not make differentiation and cost leadership at the same time.

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< p > If a centralized strategy company wants to achieve cost leadership, it can build its own cost advantages on special products or complex products. Such products are difficult to standardize production, and it is not easy to form economies of scale in production, so it is difficult to have the advantage of experience curve.

If a company adopting a centralized strategy wants to achieve differentiation, it can apply all differential methods to achieve the desired purpose. Unlike the differentiation strategy, a centralized strategy company competes with a company implementing differentiated strategy in a specific target market instead of competing with its competitors in other market segments.

In this regard, the focus of the company because of its narrow market, you can better understand the market and customers, to provide better products and services.

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< p > strong > four, regional leading < /strong > < /p >

< p > regional development strategy refers to the development strategy and development measures of enterprises according to the internal and external environment of enterprises and the analysis of different regional markets faced by enterprises, defining the development mode, defining key development areas, identifying key development areas and non key development areas, and putting forward regional arrangements for key regional construction projects in the near future.

The formulation of regional development strategy is actually a high-level and overall plan based on the conditions of regional development, the requirements for further development and the goals of development.

It is a major and decisive plan for the analysis and judgement of the overall development of the region.

Its core is to solve the basic development goals of the region in a certain period and the way to achieve this goal.

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< p > < strong > five, added value < /strong > /p >

< p > for the current Chinese enterprises, the development of high value-added products is of great strategic significance.

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< p > can enhance the strategic awareness of enterprises.

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< p > can enhance the intensive management level of enterprises < /p >

< p > can improve the international competitiveness of enterprises < /p >

< p > can improve the domestic market share of enterprises.

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"P >" can improve the economic benefit of the enterprise.

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