diff proximity here - they are a cost leader
if you are pursuing cost leadership, are you trying to hold differentiation parity?
Differentiation proximity (parity) loss. That’s one of the main risks for cost leader. Cost parity for a cost leader would mean they aren’t a leader.
i knew the concept but just can’t convince myself to choose diff proximity.
this one i batter around- think i chose the one having the product falling out of favor or whatever one was like that but i didn’t feel good about it at all.
screwed this one cause i don’t see differentiation in scredded metal
I was torn between the generic “lose differentiation parity” answer & the “segment becomes structurally unattractive” answer because the last line of the vignette said new government regulation would cause costs to increase to levels that may squeeze profits
i had cost approx loss! i do not see how differentiation was mentioned in the case and why it matters to class shredding.
Are “lose differentiation parity” answer & the “segment becomes structurally unattractive” for the same question? I remember I did choose segment becomes structurally unattractive because of quite some negative descriptions about the industry.
cost proximity cyclical industry barrier to industry cost leadership
Yeah, the metal processor pursued cost leadership through fuel effiecient trucks, etc & it said in the vignette that they pursued cost leadership strategy. Last question asked what the most likely risk to their strategy
I am fairly confident that the main concern with cost leadership is diff proximity. You may cut costs so much that your product turns to crap.
agree with Nib. they are worried that they will loose diff proximity by focusing so much on cost…
number of companies -313 I think it is cost proximity because there is the additional cost of government regulation. No differentiation risk in the industry?
Isn’t the definition of structurally unattractive…No profits to be made?
i thought the risk was structural unattractiveness because they were a cost focuser
diff parity lost… as they were cost leaders or alteast aspiring to be cost leaders
If they are cost leaders wouldn’t cost proximity lost be a good thing? That means cost is so different for different companies. The company that has cost leadership would win?