Cost Leadership or Differentiation?

Manufacturing has faced significant challenges in the last 12 months from the global pandemic to Brexit. It has been tough for so many businesses. The forecast is for these challenges to continue in 2021 and beyond. However, there is positivity in the air with the economic outlook improving and confidence growing as demand and output improves.

Costs have been rising and margins continue to be squeezed. Many management teams have been focused on cash management and they are now reviewing their growth strategies.

The time has come to shift towards creating a competitive advantage by focusing on providing a solution that offers an economic value to your target customers and is better than competition. Businesses can create a competitive advantage by focusing on cost leadership or differentiating. Honestly though, how sustainable is cost leadership? It is time for change, to think differently.

A different approach must be adopted and investment is required. The rewards are significant.

Will you be focusing on understanding your target customers’ needs, creating a solution that delivers value and improving customer satisfaction better than competition?