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Differentiation Strategy
 
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Differentiation strategies are attractive whenever buyers’ needs and preferences are too diverse to be fully satisfied by a standardized product or service. The essence of a broad differentiation strategy is to offer unique product or service attributes that a wide range of buyers find appealing and worth paying for. A company attempting to succeed through differentiation must study buyers’ needs and behavior carefully to learn what buyers think has value and what they are willing to pay for. Then the company must include these desirable features to clearly set itself apart from rivals lacking such product or service attributes. Successful differentiation allows a firm to - Command a premium price. Increase unit sales (because additional buyers are won over by the differentiating features). And gain buyer loyalty to its brand (because some buyers are strongly attracted to the differentiating features and bond with the company and its products). Differentiation opportunities can exist in activities all along an industry’s value chain and particularly in activities and factors that meaningfully impact customer value. Such activities are referred to as uniqueness drivers have a high impact on differentiation rather than on a company’s overall cost position. A low-cost provider strategy can always defeat a differentiation strategy when buyers are satisfied with a basic product and don’t think “extra” attributes are worth a higher price.
Views: 5610 Gregg Learning
Pricing & Business Strategy - Low cost & Differentiation
 
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Pricing & Business Strategy - https://stefano.tips/PricingStrategy Looking for Corporate Training in Strategic Design and Business Innovation? https://stefano.tips/Website Schedule a complimentary session: Strategic Design for organisations (30 minutes): https://stefano.tips/LetsTalk Online programmes on Strategic Design: https://stefano.tips/ContentPlatfrom Subscribe to Stefano's Blog: https://stefano.tips/Blog What is the relationship between the pricing point an organisation chooses for its products and its overall business strategy? Let's start by saying that to compete sustainably companies can adopt one of the following strategies: Low cost or Differentiation. The main challenge in developing a low-cost strategy is squeezing the costs of production to the bone. An organisation can do that by standardising and consequently automating the activities required to manufacture their products. McDonald's provides an excellent example of this. In the recent movie The Founder, you can see how Richard James "Dick" McDonald and his brother Maurice James "Mac" McDonald created a low-cost strategy in the food industry. The following slide shows how low-cost manufacturers despite selling their products at a reasonable price, can generate higher margins, therefore higher profits, by reducing the cost of production. The second type of strategy leading to sustainable competitive advantage is differentiation. Companies competing through a differentiation strategy produce premium products commanding higher prices which more than justify the increased cost of production. Creating a premium product frequently leads to increased cost of production for two main reasons: the quality of the raw material required, and more importantly the lack of standardisation and automation in the activities required for manufacturing the product. Premium car brands, e.g. Ferrari still outsourcing the productions of specific parts of their vehicles requiring the expertise and the art of local artisans; machinery can't easily replace these activities. The following slide shows how companies competing with a differentiation strategy can generate higher margins (despite increased prices) by commanding higher prices for their products. Competing purely on price is not a valuable business strategy. Not only cutting prices damage the company itself (reputation, brand, credibility) but also generates retaliations among competitors. In so doing fostering a destructive competition in the industry a contest in which no company can win. Stefano Messori is a Design Strategist and Corporate Trainer in the area of Creativity and Strategic Design for Business Innovation.
Views: 429 Stefano Messori
What is PRODUCT DIFFERENTIATION? What does PRODUCT DIFFERENTIATION mean?
 
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What is PRODUCT DIFFERENTIATION? What does PRODUCT DIFFERENTIATION mean? PRODUCT DIFFERENTIATION meaning - PRODUCT DIFFERENTIATION definition - PRODUCT DIFFERENTIATION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ In economics and marketing, product differentiation (or simply differentiation) is the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. The concept was proposed by Edward Chamberlin in his 1933 The Theory of Monopolistic Competition. Firms have different resource endowments that enable them to construct specific competitive advantages over competitors. Resource endowments allow firms to be different which reduces competition and makes it possible to reach new segments of the market. Thus, differentiation is the process of distinguishing the differences of a product or offering from others, to make it more attractive to a particular target market. Although research in a niche market may result in changing a product in order to improve differentiation, the changes themselves are not differentiation. Marketing or product differentiation is the process of describing the differences between products or services, or the resulting list of differences. This is done in order to demonstrate the unique aspects of a firm's product and create a sense of value. Marketing textbooks are firm on the point that any differentiation must be valued by buyers (a differentiation attempt that is not perceived does not count). The term unique selling proposition refers to advertising to communicate a product's differentiation. In economics, successful product differentiation leads to competitive advantage and is inconsistent with the conditions for perfect competition, which include the requirement that the products of competing firms should be perfect substitutes. There are three types of product differentiation: 1. Simple: based on a variety of characteristics. 2. Horizontal: based on a single characteristic but consumers are not clear on quality. 3. Vertical: based on a single characteristic and consumers are clear on its quality. The brand differences are usually minor; they can be merely a difference in packaging or an advertising theme. The physical product need not change, but it may. Differentiation is due to buyers perceiving a difference; hence, causes of differentiation may be functional aspects of the product or service, how it is distributed and marketed, or who buys it. The major sources of product differentiation are as follows. Differences in quality which are usually accompanied by differences in price. Differences in functional features or design. Ignorance of buyers regarding the essential characteristics and qualities of goods they are purchasing. Sales promotion activities of sellers and, in particular, advertising. Differences in availability (e.g. timing and location). The objective of differentiation is to develop a position that potential customers see as unique. The term is used frequently when dealing with freemium business models, in which businesses market a free and paid version of a given product. Given they target the same group of customers, it is imperative that free and paid versions be effectively differentiated. Differentiation primarily affects performance through reducing directness of competition: As the product becomes more different, categorization becomes more difficult and hence draws fewer comparisons with its competition. A successful product differentiation strategy will move your product from competing based primarily on price to competing on non-price factors (such as product characteristics, distribution strategy, or promotional variables). Most people would say that the implication of differentiation is the possibility of charging a price premium; however, this is a gross simplification. If customers value the firm's offer, they will be less sensitive to aspects of competing offers; price may not be one of these aspects. Differentiation makes customers in a given segment have a lower sensitivity to other features (non-price) of the product.
Views: 5738 The Audiopedia
Porter's Generic Strategies
 
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Learn more about Porter's models of strategy here on the tutor2u website: https://www.tutor2u.net/business/reference?q=porter Porter's generic strategies of low-cost and differentiation are introduced and explained in this revision video.
Views: 151901 tutor2u
Porter - Strategic Positioning: Cost leadership vs. Differentiation
 
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To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Views: 12314 Rutgers Accounting Web
Monopolistic Competition
 
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Having now studied perfect competition and Pure Monopoly, we will now step back towards the competitive end of the spectrum of market structures and examine monopolistic competition. A monopolistically competitive market is one with many small firms each selling differentiated products. The entry barriers are low, but firms do have some price making power. Since each firm's output is slightly different from each other firm's, the individual sellers will face a downward sloping demand curve, much like a monopolist. But since entry barriers are low, the chance of an individual firm earning economic profits in the long-run is small. This lesson will introduce the characteristics of monopolistic competition and provide a detailed graphical analysis of an individual firm in a monopolistically competitive market. We will look at the market for restaurants, which shows may of the characteristics of the market structure. In the end we will determine whether monopolistically competitive markets are efficient by examining the firm's average total cost and its marginal cost compared to the price in the long-run equilibrium. Want to learn more about economics, or just be ready for an upcoming quiz, test or end of year exam? Jason Welker is available for tutoring, IB internal assessment and extended essay support, and other services to support economics students and teachers. Learn more here! http://econclassroom.com/?page_id=5870
Views: 264319 Jason Welker
DIFFERENTIAL PRICING
 
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-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video. PowToon's animation templates help you create animated presentations and animated explainer videos from scratch. Anyone can produce awesome animations quickly with PowToon, without the cost or hassle other professional animation services require.
Views: 511 Kamal Ikhwan
Competitive Strategies: Cost Leadership vs Differentiation vs Focus Strategy
 
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http://www.woltersworld.com General competitive strategies for businesses. Cost leadership: make things as cheap as possible to pass on the benefits to consumers. Differentiation: make your product different and special so others will pay more for it. Focus: focus on one single group with whom to sell your product or service.
Views: 18900 Wolters World
Business-Level Strategy- Differentiation Strategy
 
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Business-Level Strategy Pt 3- Differentiation Strategy
Views: 7614 Andy Cavanagh
Marketing Strategy| Porter's Generic Strategies in Hindi| Cost leadership,Differentiation and Focus
 
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Views: 34566 Intellectual Indies
Differentiation strategy
 
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-- Created using PowToon -- Free sign up at http://www.powtoon.com/youtube/ -- Create animated videos and animated presentations for free. PowToon is a free tool that allows you to develop cool animated clips and animated presentations for your website, office meeting, sales pitch, nonprofit fundraiser, product launch, video resume, or anything else you could use an animated explainer video. PowToon's animation templates help you create animated presentations and animated explainer videos from scratch. Anyone can produce awesome animations quickly with PowToon, without the cost or hassle other professional animation services require.
Views: 153 Lisa_Blackpink
What is Product Differentiation?
 
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Product differentiation is a marketing process in which a product is differentiated from others. Put simply; it is the process of distinguishing a good or service from others, i.e., making it stand out. Read more: https://marketbusinessnews.com/financial-glossary/product-differentiation/
Marketing Differentiation and the Importance of Being Remarkable
 
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One of my all-time fave business books is Purple Cow by Seth Godin. Seriously. This book changed my life. If you've been following me for any length of time then you know that I used to listen to the audio version of it almost every single day while driving to and from college. In fact... This one book may have done more for me than my entire marketing degree. No joke. Because often all it takes is ONE single idea to radically and dramatically alter your perception. Purple Cown did that for me. But it did it many times over. Washing over my brain with purply-cow-goodness until I could no longer look at a business, marketing message, or advertisement the same way. Repetition. Repetition. Repetition. Side Note: Repetition and immersion are the reason I put out so many different kinds of content in so many different forms. Because I want to do the same thing for you that Purple Cow did for me. (It brainwashed me for success) That's why if you haven't signed up for the memos yet you're missing out big time: https://www.adamerharttraining.com/p/memos So one of the questions that Seth Godin poses in Purple Cow is: "Hey, did you see that?" It's an innocent question - but it packs a punch. You see all too often entrepreneurs think because they're not OTT (over the top) personalities like some fake reality TV star - there's no use in even trying to go that route. Instead, they'll just focus on providing a good product or service at a good value. Sadly... Just providing a good product or service at a good value is one of the fastest ways for your business to fail. Why? Because that is exactly what EVERY single other person out there is doing right now. And it's boring. What you want instead is for people to say: "Hey, did you see that?" That's remarkable. That's Purple Cow. And that's pure marketing gold. Give them a reason to talk about you. ► Download your free copy of The One Page Marketing Plan Here – http://adamerhart.com/marketingplan #LINKS Website: http://adamerhart.com Twitter: http://twitter.com/adamerhart Facebook: http://facebook.com/officialadamerhart YouTube: https://www.youtube.com/adamerhartvideo
Views: 118 Adam Erhart
PU Foam Application | Best 500 Products
 
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Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
Price Differentiation Polakovic
 
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Cenova diferenciacia
Views: 75 Matúš Polakovič
Sales Training Technique #88 - Selling Differentiated Products to Reduce Discount Negotiation
 
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Sales Training Technique #87 - Selling Differentiated Products to Reduce Discount Negotiation. If you only have one product to sell in your market segment, you can create a a tiered product offering by adding services such as: maintenance, upgrades, support, training, and faster delivery. Adding different services to the product will allow you to negotiate up or down with a client who is seeking discount pricing. Victor Antonio Bio: http://www.VictorAntonio.com -------------------------- Author, trainer and speaker Victor Antonio is proof that the American dream of success is alive and well. A poor upbringing from one of the roughest areas of Chicago didn't stop Victor from earning a B.S. Electrical Engineering, an MBA and building a 20 year career as a top sales executive and becoming CEO of a multimillion dollar high-tech company. Prior to being CEO he was President of Global Sales and Marketing for a $420M company. He was tasked with building a global sales force, establishing contract agreements, developing financial pricing models and in charge of developing the corporate brand and marketing the company's services for worldwide acceptance. Before that he was Vice President of International Sales in a Fortune 500 $3B corporation at the time. Within a two and half year time period he grew their business from $14M to $98M in annual revenue. During that time period his sales totals were $162M and was selected from over 500 sales managers to join the President's Advisory Council for excellence in sales and management." Victor has shared the big stage with some of the top business speakers in the nation including: Rudy Giuliani, Zig Ziglar, Dr. Robert Schuller, Phil Town (Author of Rule #1), Paul Ortellini (CEO of Intel), John May (CEO of FedEx Kinkos) and many other top business speakers.
Views: 2504 Victor Antonio
Pricing Strategy: All Pricing Strategies Full Description
 
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This video is all about pricing strategies. All time of pricing strategies are given. This knowledge is very important of B.B.A student. A student can use this knowledge in many course. He also can use this when he or she make an assignment............ So, the descriptions are given below.............. Price positioning and visibility........... 1. Market penetration strategy A relatively low market entry price may be used with the objective of building volume and market position. 2. Market skimming strategy A high price may be selected to generate large margins. Illustrative pricing strategies.................... 1.High active strategy- Highlight the high price Superior value, quality, dependable products such as high end alcoholic beverages High price even in promotional campaigns show consumers their differentiated product approach; also keeps competitors away. 2. High passive strategy- do not highlight the high price, but focus on non-price product features Very small target markets, often niche markets. High priced brands such as expensive watches, car brands, top end apparel companies market their products with non-price features to convince the consumers with product quality and performance. 3.Low active strategy- highlight the low price Day to day products, consumable goods, airlines, insurance, travel agents use this strategy to highlight the low price and claim they are offering value against competitors through lower price Walmart, Shopno and other brands use it. Particularly favorable when the brands are well known- then consumers do not have a question of quality arising 4. Low passive strategy- do not highlight the low prices Used by small producers whose brands are not familiar to buyers and have low cost features than other competitors, eg- small suppliers who provide food to retail stores/ department stores do not have highlighted price, although their price is relatively low. By not highlighting the low price, the firm runs less danger that potential buyers may assume the brand is inferior to other brands. Legal and ethical considerations........................ Price fixing- Illegal conspiracy between a group of firms (competitors) that they will not sell a product under a certain amount. Medicine companies resort to this. CNG and Rickshaw walas do it in CNG or rickshaw stands. Price discrimination- the practice of charging different prices to different buyers for goods of like grade and quality. Deceptive pricing- Consumers are often attracted to a store by a promoted low price item. Once in the store, either that product is claimed to be sold out or be of lesser quality and the consumer is persuaded to buy an expensive product. Predatory pricing- Charging very low price for a product to drive away competitors. Once they are out, increase the price so that consumers are forced to buy from the firm. These days very rarely used. Pricing management............... Price segmentation- Price may be used to appeal to different market segments. Airlines/ travel agencies have packages for different consumers. Industrial goods price depend on low/ large volume buying. Value chain pricing- How manufacturers sell to distributors (retailers and wholesalers) with a margin as profit Price flexibility- Fixed price or can be negotiated? Product life cycle pricing- Occasionally prices are declined through the product life cycle of a brand..................... Thank You.....For Watching.................................
Views: 263 Creative NaaHianN
Generic strategies: cost leadership, differentiation, focus (Antonio Ghezzi)
 
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Video related to Polimi Open Knowledge (POK) http://www.pok.polimi.it This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License (CC BY-NC-SA 4.0). http://creativecommons.org/licenses/by-nc-sa/4.0/
Views: 2167 Polimi OpenKnowledge
3.8 9 Cost Focus
 
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This video considers the cost focus strategy within Porter's Generic Strategies.
Views: 442 Mr Evans Business
Carmakers in India are adopting a differentiated product strategy
 
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Carmakers in India are adopting a differentiated product strategy to address the burgeoning fleet and taxi market. They are either selling models that are past their prime to this market or positioning their products differently in terms of features and price.
Views: 294 Mint
1539 Cost Leadership Strategy A
 
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Cost leadership strategies succeed in new product development when the firm manages manufacturing and distribution costs. The advantage of cost leadership strategy is high profits, but the business strategy can be threatened by competitors offering differentiated products and services. Read the full post at www.globalnpsolutions.com/idea-incubator/
Views: 3005 Global NP Solutions
Product Differentiation and Price Leadership
 
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Vlad Rybak - Minsk Commercial
Views: 62 vlad rybak
The Marketing Mix - Pricing
 
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On Facebook: https://www.facebook.com/365careers/ On the web: http://www.365careers.com/ On Twitter: https://twitter.com/365careers Subscribe to our channel: https://www.youtube.com/365careers This lesson on Marketing strategy introduces the concept of Pricing. Watch more at https://www.udemy.com/mba-in-a-box-business-lessons-from-a-ceo . This video is part of a series of short lessons about Business Strategy. The complete module can be found on Udemy, as a core part of the MBA in a Box course by CEO Valentina Bogdanova and 365 Careers. The course provides a complete Business Education: Business Strategy, Management, Marketing, Accounting, Decision Making & Negotiation in just under 10 hours. -------------------------------------------------- Marketing module table of contents: Marketing: An Introduction Introduction to Marketing What is Marketing's role? Who works in Marketing? Marketing's key processes Marketing: Building a Marketing Strategy What is a marketing plan? The psychology of customers - needs, wants, and demands Conducting marketing research The different stages of marketing research Collecting Primary Data for Marketing Research Performing client segmentation Choosing a target customer group Marketing: How to set up an effective Marketing Mix The four Ps of Marketing and their importance Marketing: How to set up an effective Marketing Mix - Product decisions The product concept Classifying a firm's products The typical product lifecycle Product branding Product packaging Marketing: How to set up an effective Marketing Mix - Pricing decisions The variables influencing product pricing The demand curve Performing break-even calculations Marketing: How to set up an effective Marketing Mix - Place decisions Setting up product distribution Types of distribution channels The advent of e-commerce Marketing: How to set up an effective Marketing Mix - Promotion decisions The essence of marketing promotion Creating a marketing campaign The importance of social media Marketing: How to set up an effective Marketing Mix - A dynamic concept The four Ps of Marketing - A dynamic concept Marketing: Marketing strategy in the long run Allocating the funds available for Marketing - The budgeting exercise Using KPIs to improve decision-making Short-term vs. Long-term marketing goals Interpreting and calculating the Customer-Lifetime-Value formula -------------------------------- Pricing is the one variable a company can change overnight and see an immediate effect on revenues and profits. However, pricing decisions inconsistent with a firm’s competitive strategy can be dangerous, which is why companies should address the topic with much caution and attention. There are three important components we need to distinguish in this process. The amount a product costs to be produced, the price customers pay to buy the product, and the value they acquire from the product. If a company aims at cost leadership, then the focus will be costs (trying to keep them as low as possible). The company must offer a price slightly lower than the one offered by competitors. Conversely, if a firm’s strategy is differentiation, then the critical factor will be the value delivered to customers. Costs are not that important, as companies offering a differentiated product can charge more. So, pricing must be coherent with competitive strategy, although sometimes it is tempting to adjust prices to stimulate short-term gains of market share and increases of sales. Top-level managers have to stay focused on the big picture and make coherent decisions in line with the firm’s long-term strategy.
Views: 29031 365 Careers
Amazon Product Barriers to Entry | Differentiating Your Private Label Product
 
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Use different Barriers to Entry for your Amazon FBA Product to minimize competition. Combine a high priced item with small inexpensive items to make a bundle! Become a FBA Seller Below! ▶️My Amazon Course: https://goo.gl/NBGTxH ▶️Amazon FBA Group: https://www.facebook.com/groups/1260229020753608/ ▶️Product Research Tool - Jungle Scout: https://affiliate.junglescout.com/idevaffiliate.php?id=1652 - SOCIAL MEDIA - AMAZON FBA PAGE: https://www.facebook.com/AmazonSellerLuke/ FACEBOOK: https://www.facebook.com/luke.wechselberger INSTAGRAM: https://www.instagram.com/luke_wechselberger/ TWITTER: @FBAFREAK - My Camera Gear & Setup - Panasonic G85 - https://amzn.to/2t1X3El Mavic Air Drone - https://amzn.to/2sWxFA3 Canon 70D - http://amzn.to/2hIewPV Lense Used - http://amzn.to/2AXpA0o Rode Video Mic Pro - http://amzn.to/2yRTrWx Rode Video Mic - http://amzn.to/2AV9xAd Tripod - http://amzn.to/2yTdrIe MacBook Pro: http://amzn.to/2jAdHpp MacBook Multi-Port Adapter: http://amzn.to/2jyGISl #Amazon #FBA #Differenciate **We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.
Views: 233 Luke W
OPS course:- Implementing Low Cost Strategy
 
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OPS : Implementing Low Cost Strategy Instructor in charge: Assoc. Prof. Dr. Suhaimi Bin Mohamed Sarif MGT 6640 Organizational Policy and Strategy (OPS) IIUM, Graduate School of Management (GSM)
Views: 488 ABDIRAHMAN GARABEY
Differentiation Advantage
 
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Jeff Dyer, Brigham Young University BUSM 480 Lecture 2/10/14
Views: 709 OLS Sec
Chap 5    Differentiation
 
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Specifics on Differentiation and Focus strategies
Views: 152 LalaniCenter
Differentiation Strategy
 
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Group 2 - Strategic Management
Views: 30 John Iannuzzi
Publix Differentiation Strategy
 
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This video is about Publix Differentiation Strategy
Views: 226 Spencer Elston
Focus strategy - defined
 
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Focus strategy - is a generic strategy which involves concentrating the marketing effort on a particular market segment and competing in this segment using cost actor or a differentiation approach. - created at http://www.b2bwhiteboard.com
Views: 2685 B2Bwhiteboard
Differentiation in Marketing
 
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http://www.moneywordsmarketing.com
Views: 27 Alan Tarr
What is BERTRAND COMPETITION? What does BERTRAND COMPETITION mean?
 
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What is BERTRAND COMPETITION? What does BERTRAND COMPETITION mean? BERTRAND COMPETITION meaning - BERTRAND COMPETITION definition - BERTRAND COMPETITION explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ Bertrand competition is a model of competition used in economics, named after Joseph Louis François Bertrand (1822–1900). It describes interactions among firms (sellers) that set prices and their customers (buyers) that choose quantities at the prices set. The model was formulated in 1883 by Bertrand in a review of Antoine Augustin Cournot's book Recherches sur les Principes Mathematiques de la Theorie des Richesses (1838) in which Cournot had put forward the Cournot model. Cournot argued that when firms choose quantities, the equilibrium outcome involves firms pricing above marginal cost and hence the competitive price. In his review, Bertrand argued that if firms chose prices rather than quantities, then the competitive outcome would occur with price equal to marginal cost. The model was not formalized by Bertrand: however, the idea was developed into a mathematical model by Francis Ysidro Edgeworth in 1889. The model rests on very specific assumptions. There are at least two firms producing a homogeneous (undifferentiated) product and can not cooperate in any way. Firms compete by setting prices simultaneously and consumers want to buy everything from a firm with a lower price (since the product is homogeneous and there are no consumer search costs). If two firms charge the same price, consumers demand is split evenly between them. It is simplest to concentrate on the case of duopoly where there are just two firms, although the results hold for any number of firms greater than 1. A crucial assumption about the technology is that both firms have the same constant unit cost of production, so that marginal and average costs are the same and equal to the competitive price. This means that as long as the price it sets is above unit cost, the firm is willing to supply any amount that is demanded (it earns profit on each unit sold). If price is equal to unit cost, then it is indifferent to how much it sells, since it earns no profit. Obviously, the firm will never want to set a price below unit cost, but if it did it would not want to sell anything since it would lose money on each unit sold. Why is the competitive price a Nash equilibrium in the Bertrand model? First, if both firms set the competitive price with price equal to marginal cost (unit cost), neither firm will earn any profits. However, if one firm sets price equal to marginal cost, then if the other firm raises its price above unit cost, then it will earn nothing, since all consumers will buy from the firm still setting the competitive price (recall that it is willing to meet unlimited demand at price equals unit cost even though it earns no profit). No other price is an equilibrium. If both firms set the same price above unit cost and share the market, then each firm has an incentive to undercut the other by an arbitrarily small amount and capture the whole market and almost double its profits. So there can be no equilibrium with both firms setting the same price above marginal cost. Also, there can be no equilibrium with firms setting different prices. The firms setting the higher price will earn nothing (the lower priced firm serves all of the customers). Hence the higher priced firm will want to lower its price to undercut the lower-priced firm. Hence the only equilibrium in the Bertrand model occurs when both firms set price equal to unit cost (the competitive price). Note that the Bertrand equilibrium is a weak Nash-equilibrium. The firms lose nothing by deviating from the competitive price: it is an equilibrium simply because each firm can earn no more than zero profits given that the other firm sets the competitive price and is willing to meet all demand at that price. The Bertrand model rests on some very extreme assumptions. For example, it assumes that consumers want to buy from the lowest priced firm. There are various reasons why this may not hold in many markets: non-price competition and product differentiation, transport and search costs. For example, would someone travel twice as far to save 1% on the price of their vegetables? The Bertrand model can be extended to include product or location differentiation but then the main result – that price is driven down to marginal cost – no longer holds. With search costs, there may be other equilibria apart from the competitive price – the monopoly price or even price dispersion may be equilibria as in the classic "Bargains and Rip-offs" model. ...
Views: 9117 The Audiopedia
Bamboo Flooring Installation
 
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Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
PU Foam | Best 500 Products
 
07:13
Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
Product Differentiation Through Windowing Strategies - Tim Dodd
 
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Tim Dodd, Senior Advisor, Technicolor and former President of Ultraviolet, shares insights from an HD Digital trial that boosted electronic purchase and perceived value.
Views: 63 ThisIsCTAM
How the CEO Defines Who You Compete With, and How to Win
 
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Chief Executive Officer demonstrates the corporate strategy’s competitive view. Joining us for today’s show is Mike Dickerson, the Chief Executive Officer for ClickDimensions who knows how to make the number. Today’s topic is focused on demonstrating the corporate strategy’s competitive view. Mike leverages the How to Make Your Number in 2018 Workbook to access emerging best practices as a guide for our questions. Review the Competitors phase starting on page 70 of the Corporate Strategy section dedicated to generating revenue growth. For many companies, the CEO leaves competitive guidance up to a simple report of competitor capabilities developed by an analyst. This represents one of the least defined areas of corporate strategy by CEO’s for their marketing and sales teams. There is a better way to increase your team’s win rate against the competition. Mike Dickerson, the Chief Executive Officer for ClickDimensions, a SaaS-based marketing automation company with 3,000 customers. Under Mike’s leadership, the company has grown 45% in the last year with revenues of $45M. Mike will demonstrate how to define who you compete with, and how to win. Why this topic? Share battles often lead to below average revenue growth because the cycle of market share give-and-take rarely results in a permanent share gain for any one competitor. Sustainable revenue growth from share gain comes from changing the product or its delivery enough to create what is effectively a new product. Price wars do not result in share gain driven revenue growth because they can result in a decline in sales and are not repeatable. This is because customers will eventually push back, thus eroding any short-term revenue growth. Mike is uniquely qualified to speak on this topic as a CEO with a corporate strategy and planning background. He knows the importance of setting the right corporate strategy to enable his functional leaders to be successful. In the first segment of the program Mike discusses his company’s unique competitive advantage. There are three broad types of competitive advantage. The first is a superior product, and that's clearly the case here with ClickDimensions, who has built their product with an User Interface (UI) that’s differentiated. They have a very clear competitive advantage there. The second type of differentiation is price. The way that you can compete on price is that you have a lower cost structure than your competitors. As a result of that, you can be more competitive in pricing and offer a better value proposition. Mike describes a very unique go to market model, with a thousand channel partners that allow him to have a lower sales and marketing costs, so he can be more competitive from a pricing perspective, which is a brilliant strategy. The third type of competitive advantage a CEO can typically choose from is customer experience. A god example we can all relate to is the difference between a Four Seasons Hotel, as opposed to the Hilton. They both sell the same thing for the most part, but the Four Season's experience is quite a bit different, so they charge quite a bit more, even though it's the same product. That's called the customer experience. Listen as Mike describes his customer experience advantage. Here is a starting quote from Mike, and you’ll want to hear the full show to unpack this example and apply it to your company: Our longer term sustainable advantage is in our distribution system. Sure, we must stay relevant in our product – The product we have today may only be a part of our portfolio tomorrow. The pace of technology changes, certainly in the marketing technology space, and I'm not sure anyone has an exactly perfect view on where that's going to be. So, we'll have to react to that. But the long-term thing that I think we can build a business on is the unique distribution model and the support that we provide in that space.
Views: 524 SBI TV
A Company Strategy that Beats the Competition
 
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http://GreatMarketingPlanTips.com ►Here's a quick tip for marketing your business or product that can save you thousands of dollars and tons of agony -- by focusing you're marketing on those people who are ready to buy right now. For your company strategy, here's a quick tip that will help you jump ahead of the competition, even in a competitive marketplace -- while generating 20 to 100 times the results of going forward without strategic planning. This technique will help your product or company stand out and give you more control over the results. While creating a company strategy, most people get so caught up with tactics, they forget that a strategic plan with a clever twist could multiply your results far beyond just about any tactic done by itself without strategic planning. In putting together your marketing mix and your strategic planning, by clearly differentiating your products and services in a way that's more attractive than what your competitors are offering, and then communicating those differences to your prospects, your business strategy could really cause your product or service to achieve stratospheric results. Don't skip over this seemingly simple exercise. For all the business strategies you want to implement, this type of strategic plan could give you a head start in defining and implementing an effective company strategy that will deliver growing sales and profits, even in a competitive market. If you found this tip helpful, subscribe to my free newsletter and awesome eBooks with just about every marketing tool you'll need to get customers and create a quick-start marketing plan, using the link below. http://GreatMar.com I've also got some awesome videos coming up, including a technique you can use to funnel loads of customers from other businesses to yours. Once you subscribe, you'll have access to the growing collection of videos, demo files, templates, and cheat sheets which are available to all free subscribers. Check it out now by using the shortcut, http://GreatMar.com http://www.youtube.com/watch?v=hapW4XJElTc
Views: 646 GreatMarketingPlan
The Art of Competitive Differentiation
 
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The way we sell differentiates us far beyond what we sell. In the eyes of most buyers we are selling a commodity. The thing that makes the biggest difference is truly understanding the buyer and helping them see how we deliver best value and lowest risk.
Views: 335 Tony J. Hughes
i Panel Flooring Installation | සිවිලිම | Sivilima
 
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Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
Silicone Application | Best 500 Products
 
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Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
Ico Tile | Sivilima | i-Panel
 
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Idea is a leading Ceiling Sheet importer and distributor in Sri Lanka. As a well reputed organization in wood substitute material. We provide high-quality decorative home improvement to your ceiling sheet solutions, offering differentiated products to meet specific customer needs. All products are imported to meet the highest standards. Thanks to our R & D unit, we are able to offer our i-Panel Ceiling sheet range at very competitive prices. i-Panel products are available on the professional and do-it-yourself markets all over the Country. With a motivated, self-directed workforce, we aim for a dominant marketing and product leadership by offering qualitative and reliable i-Panel ceiling sheet through innovative technological features and superior customer service.
TOP 10 Bullion Products - 1 oz Silver Bars | SD Bullion
 
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Buy 1 oz Silver Bars - https://SDBullion.com/silver/silver-bars/1-oz-silver-bars Learn more about Gold, Silver and other Precious Metals FREE eBook - https://SDBullion.com/book Coming in 10th place in our TOP 10 Bullion Product countdown... SD Bullion customers purchase tonnes of 1 oz Silver Bullion bars each and every year. Both private and some government mints produce 1 troy ounce silver bullion bars containing a minimum .999 fine silver composition. Bullion buyers often buy 1 oz silver bars due to their generally lower price premiums versus typically higher priced government issued silver coins. Popular 1 oz silver bullion mints include the 1 oz silver bullion bar you are looking at right now from Sunshine Minting. As well there are 1 oz silver bullion bars made by Silvertowne, Geiger, Australia’s Perth Mint, and others. Some 1 oz silver bullion bar mint brands also qualify for Silver IRAs, making them also available for tax deferred long term retirement savings. The Sunshine Mint has differentiated their bullion product for example, by infusing this 1 oz silver bullion bar design with anti counterfeit technology. This Sunshine Mint 1 oz silver bar contains a MintMark SI seal which allows end user verification of inlaid holograms using the Sunshine Mint decoder lens card. One ounce silver bullion bars are packaged and shipped in a variety of ways. Some come in protective plastic sheets like this, others come in protective mint tubings, or packed with bubble tape protecting respective 1 oz silver bar allotments from clanging in transit. When silver bullion product price premiums are low, one can often buy low premium 1 oz silver bullion bars very closely above the fluctuating silver spot price. Typically when selling 1 oz silver bullion bars to bullion dealers like ourselves, customers will yield bid prices at or just below the dynamic silver spot price. One troy ounce silver bullion bars will remain a favorite amongst silver bullion buyers, for they allow purchasers to yield more silver bullion troy ounces versus competing higher priced silver bullion products. You can buy or sell various 1 oz silver bullion bar products at https://SDBullion.com/silver/silver-bars #SilverBars #SilverBullion #BestSilverBars Full Playlist Notes: https://SDBullion.com/blog/best-bullion-products-top-10-countdown --
Views: 828 SD Bullion
Chapter 10 : Strategy - The Quest to Slow Profit Erosion
 
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Chapter 10 Video Lecture Managerial Economics: A Problem Solving Approach by Luke Froeb, Brian McCann Summary of Main Points Chapter 10 -- Strategy is simple—to increase economic performance, figure out a way to increase P (price) or reduce C (cost). -- The industrial organization economics (IO) perspective assumes that the industry structure is the most important determinant of long-run profitability. -- The Five Forces model is a framework for analyzing the attractiveness of an industry. Attractive industries have low supplier power, low buyer power, high entry barriers, low threat of substitutes, and low rivalry. -- According to the resource-based view (RBV), individual firms may exhibit sustained performance advantages due to their superior resources. To be the source of sustainable competitive advantage, those resources should be valuable, rare, and difficult to imitate/ substitute. -- Strategy is the art of matching the resources and capabilities of a firm to the opportunities and risks in its external environment for the purpose of developing a sustainable competitive advantage. -- Be wary of any advice you read that claims to identify critical resources or capabilities that successful companies have to develop in order to gain a competitive advantage. To stay one step ahead of the forces of competition, a firm can adopt one of three strategies: cost reduction, product differentiation, or reduction in the intensity of competition.
Views: 7630 LukeFroeb
Sales Training Video #87 - Include Low Tier Sales Products to Protect Against Competition
 
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Sales Training Video #87 - Include Low Tier Sales Products to Protect Against Competition. Not having a lower tiered (priced) product in your sales product portfolio will leave you open to competition coming in and selling at a lower level. Once inside, the competition will then start moving up the sales product chain and begin selling your customer products that directly compete with your product; forcing you to deliver price concessions. Victor Antonio Bio: http://www.VictorAntonio.com -------------------------- Author, trainer and speaker Victor Antonio is proof that the American dream of success is alive and well. A poor upbringing from one of the roughest areas of Chicago didn't stop Victor from earning a B.S. Electrical Engineering, an MBA and building a 20 year career as a top sales executive and becoming CEO of a multimillion dollar high-tech company. Prior to being CEO he was President of Global Sales and Marketing for a $420M company. He was tasked with building a global sales force, establishing contract agreements, developing financial pricing models and in charge of developing the corporate brand and marketing the company's services for worldwide acceptance. Before that he was Vice President of International Sales in a Fortune 500 $3B corporation at the time. Within a two and half year time period he grew their business from $14M to $98M in annual revenue. During that time period his sales totals were $162M and was selected from over 500 sales managers to join the President's Advisory Council for excellence in sales and management." Victor has shared the big stage with some of the top business speakers in the nation including: Rudy Giuliani, Zig Ziglar, Dr. Robert Schuller, Phil Town (Author of Rule #1), Paul Ortellini (CEO of Intel), John May (CEO of FedEx Kinkos) and many other top business speakers.
Views: 1498 Victor Antonio
What Is Your Pricing Strategy?
 
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In this video, I want to talk a bit about strategy. If you want to build a successful, profitable business, whether it's a bookkeeping, accounting or tax professional business, then one of the things you have to figure out right at the start is your strategy. Your strategy is the foundation of the business, the bedrock. Without a strategy, you're just relying on luck. When we think about strategy, one of the key components is pricing. There's essentially three different strategies that you could follow with your pricing. Let me describe those three strategies, then you can choose which one's right for you. The first one is what's often referred to as low-cost leadership. What that means is essentially it's about being the cheapest. More specifically, it's about being the cheapest because we create something within the structure of our business that's unique, a different cost structure that nobody else can copy, which enables us to be cheap, and nobody else can compete with us. That's something that can be achieved. There is a wonderful business in the UK called Richer Sounds. It was created by Julian Richer many years ago. It's been in the Guinness Book of Records many times for the highest volume of retail sales per square foot of space. Incredible business. They sell TVs and hi-fi equipment much, much less than the High Street chains. How do they do that? They have something very unique about their cost structure that nobody else can copy. They're extremely successful. However, I would argue that in the accounting profession, I have never come across a business that's managed to pull this off. I'm not sure how you can create a cost structure that nobody can compete with. Sometimes people say to me, "Mark, I can. I'm going to create an online virtual accounting business." Why can't anybody else do that? As soon as somebody else copies your model, they can then compete on price, and you're in a price war. I don't think that's a viable option. The other end of the spectrum, option two, is to create a highly valuable and differentiated business. Focus on adding value and charging a premium price. I've been fortunate over the last 16 years to work with accounting firms in the UK. What I found is when I look at the most successful accounting firms, the most profitable accounting firms, they all follow option two. They focus on being more valuable and, also, on being more expensive. I would argue that option two will always beat option one in the accounting, tax, and bookkeeping professions. If you agree with that, my question for you is, "What are you going to do to be different and better than everybody else? What are you going to do to add more value to clients?" There's a third option, and it's what I call the default strategy. It's actually one that most people follow. Let me share with you a story from my own experience way back when I started my firm. It's a mistake that many accountants make. What we do is we look at our competitors, and we try to be competitive compared with the bookkeeper or the accountant down the road, which basically means being cheap. This is what I did. In the early years of my accounting firm, I'd go and see a prospective client. In the meeting, I'd impress them with all my knowledge of tax planning and so on. They very often wanted me to act for them subject to the price. I had to come up with a price. This is what I did, I would do everything I possibly could in the meeting to get a copy of their last set of annual financial statements. During the course of the meeting, I would flick to the back page, which listed the detailed profit and loss account and pretending to comment on some of the things like margins, but what I was really looking for was that line that said Annual Accounting Fees and make a note of the number, the number the previous accountant was charging. When it came to giving my price, magically somehow my price was 10% less than the previous accountant. I did that for 2 and 1/2 years. In 2 and 1/2 years, I didn't make any money at all. My practice became a complete mess, because one of the things I learned was a crazy strategy. One thing I know is that most accountants are too cheap. They don't know how to price. The worst thing we can possibly do is try to copy, or even worse beat, the firm down the road. They're already too cheap. We're creating a recipe for complete disaster. We have to focus on being different, being better, and not copying the firm down the road. If you want some more help, I've created a video training program called How to Build a Successful Bookkeeping Business. The training program is actually just as relevant for accountants and tax advisors. In that program we talk much more about strategy amongst other things. To find out more, there's a link somewhere perhaps below this video.
Views: 1203 Mark Wickersham
What is HOTELLING'S LAW? What does HOTELLING'S LAW mean? HOTELLING'S LAW meaning & explanation
 
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What is HOTELLING'S LAW? What does HOTELLING'S LAW mean? HOTELLING'S LAW meaning & explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Hotelling's law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum differentiation as well as Hotelling's linear city model. The observation was made by Harold Hotelling (1895–1973) in the article "Stability in Competition" in Economic Journal in 1929. The opposing phenomenon is product differentiation, which is usually considered to be a business advantage if executed properly. The street is a metaphor for product differentiation; in the specific case of a street, the stores differentiate themselves from each other by location. The example can be generalized to all other types of horizontal product differentiation in almost any product characteristic, such as sweetness, colour, or size. The above case where the two stores are side by side would translate into products that are identical to each other. This phenomenon is present in many markets, particularly in those considered to be primarily commodities, and results in less variety for the consumer. Businesses in fact follow both product differentiation and Hotelling's law, as contrary as they may seem. Take for example JetBlue. The low cost airline markets itself as a revolutionary type of airline – cheaper airfare, nicer planes, better locations. As JetBlue tries to differentiate its product from its competitors, it also adopts similar flight schedules and similar service. An extension of the principle into other environments of rational choice such as election "markets" can explain the common complaint that, for instance, the presidential candidates of the two American political parties are "practically the same". Once each candidate is confirmed during primaries, they are usually established within their own partisan camps. The remaining undecided electorate resides in the middle of the political spectrum, and there is a tendency for the candidates to "rush for the middle" in order to appeal to this crucial bloc. Like the paradigmatic example, the assumption is that people will choose the least distant option, (in this case, the distance is ideological) and that the most votes can be had by being directly in the center.
Views: 4190 The Audiopedia
Maasai women milk cash from yoghurt business – Odupa Part 2
 
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Are you interested in making your dairy business more profitable? Value addition in dairy farming in Kenya is the in thing in this sector of agriculture. It refers to that increase in value of a commodity as a result of changing its physical state, differentiated production, product segregation or employing a different marketing approach. This group of Women are doing just that. The yoghurt brand known as ‘Odupa’, a Maasai word for superior. #DairyFarming #ValueAddition
Views: 749 Farmers'_TV Kenya.