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