Competitive strategies to achieve critical scale economies

Question

Which are competitive strategies to achieve critical scale economies and make market share based?

Answer 1

The competitive strategies most underdogs use to achieve critical scale economies and make market share are based on:

i. Using lower prices to win consumers from feeble higher-cost rivals.

ii. Integrating with or acquiring rival firms to get the size required to capture greater scale economies.

iii. Investing in new equipment and cost-saving facilities, maybe relocating operations to countries where expenses are significantly lower.

iv. Pursuing technological innovations or radical value chain revamping to get dramatic cost savings.