The Winning Combination: Extreme Value and Low Cost Production

In today’s hyper competitive global business environment, which seems to always be in a state of flux, is it possible to build your business to be invincible? Perhaps not totally invincible, but it is possible to gain and sustain leadership in your business sector with the winning combination; offering extreme value to your customers and achieving low cost production capability. This combination establishes a solid business foundation that is very difficult for competitors to penetrate, and at the same time, enables business sustainability that minimizes the impact of external forces such as global events like the the Covid-19 pandemic of 2020. Furthermore, when a business has a rigorous and effective culture of continuous improvement, once business sector leadership is achieved, it is difficult to lose it. Extreme value is the ability to have a competitive price (perhaps the lowest price) and provide significantly more value to your customers while maintaining the highest profit margin. Offering extreme value results in not just satisfied customers, but thrilled customers that will be loyal and help promote your brand, products and services. Low cost production capability is achieved through optimization of business operations ensuring that your cost for producing, distributing and offering your product and/or services is the lowest in your business sector maximizing profit margins while providing the highest level of quality. Achieving low cost production capability ensures that you have more flexibility to lower your price if you are engaged in a price war with competitors, and still be able to maintain higher profit margins forcing competitors to sell products and services at a loss when you are still profitable. Low cost production also enables significant investment into the development and commercialization of new leading edge technologies. When you combine the ability to offer extreme value and achieving low cost production it is better than a one-two combination punch from a champion prize fighter.

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