they can contribute to the creation

they can contribute to the creation of a differentiation or cost-leadership advantage. Thus innovation, a costly process that results in unique products, is nearest the differentiation axis, followed by quality as excellence, customer responsiveness, and quality as reliability; efficiency with its focus on lowering the cost structure is closest to the cost-leadership axis.
To reach the value creation frontier and so achieve above-average profitability, a company must formulate and implement a business model based on one or a combination of three generic business-level strategies: cost leadership, differentiation, and focused. A generic business-level strategy gives a company a specific form of competitive position and advantage vis-a-vis its rivals that results in above-average profitability.11 Generic means that all companies can potentially pursue these strategies regardless of whether they are manufacturing, service, or nonprofit enterprises; they are also generic 'because they can be pursued across different kinds of industries.12
Cost Leadership
A company pursuing a cost-leadership business model chooses strategies that do everything possible to lower its cost structure so it can make and sell goods or ser¬vices at a lower cost than its competitors. These strategies include both functional strategies designed to improve its operating performance and competitive strategies intended to influence industry competition in its favor. In essence, a company seeks to achieve a competitive advantage and above-average profitability by developing a cost-leadership business model that positions it on the value creation frontier as close as possible to the lower costs/lower prices axis.
Two advantages accrue to a company pursuing cost leadership. First, because the company has lower costs, it will be more profitable than its closest competitors, the companies that compete for the same set of customers and charge similar low prices for their products. Second, the cost leader gains a competitive advantage because it is able to charge a lower price than its competitors because of its lower cost struc¬ture. Offering customers the same kind of value from a product but at a lower price attracts many more customers, so that even though the company has chosen a lower price option, the increased volume of sales will cause profits to surge. If its competi¬tors try to get lost customers back by reducing their prices and all companies start to compete on price, the cost leader will still be able to withstand competition better than the other companies because of its lower costs. It is likely to win any competi¬tive struggle. For these reasons, cost leaders are likely to earn above-average profits. A company becomes a cost leader when its strategic managers make the following competitive positioning decisions.
Competitive Positioning Decisions The cost leader chooses a low to moderate level of product differentiation relative to its competitors. Differentiation is expensive; the more a company spends resources to make its products distinctive, the more its costs rise.13 The cost leader aims for a “sufficient” level of differentiation obtainable at low cost.14 Walmart, for example, does not spend hundreds of millions of dollars on store design to create an attractive shopping experience as chains like Macy’s, Dillard’s, or Nordstrom’s have done. As Walmart explains in its mission statement, “We think of ourselves as buyers for our customers, and we apply our considerable strengths to get the best value for you.” Such value is not obtained by building lavish stores.15 Cost leaders often wait until customers want a feature or service before providing it. For example, a cost leader like Vizio or Phillips is never the first to offer the state-of-the-art picture or sound quality; they increase their LCD TV capabilities only when it is obvious that

Kết quả (Việt) 1:

họ có thể đóng góp vào việc tạo ra một sự khác biệt hoặc lợi thế chi phí lãnh đạo. Vì vậy, sáng tạo, một quá trình tốn kém mà kết quả là sản phẩm độc đáo, là gần nhất với trục sự khác biệt, theo sau là chất lượng xuất sắc, để đáp ứng khách hàng và chất lượng như độ tin cậy; hiệu quả với tập trung vào việc giảm chi phí cơ cấu là gần nhất với chi phí lãnh đạo trục.Để tiếp cận biên giới tạo ra giá trị và do đó đạt được lợi nhuận trên trung bình, một công ty phải xây dựng và thực hiện một mô hình kinh doanh dựa trên một hoặc một sự kết hợp của ba chiến lược cấp kinh doanh chung: chi phí lãnh đạo, sự khác biệt, và tập trung. Một chiến lược kinh doanh cấp chung cho một công ty một hình thức cụ thể vị thế cạnh tranh và lợi thế vis-à-vis các đối thủ của mình mà kết quả ở trên trung bình profitability.11 chung chung có nghĩa là tất cả các công ty có tiềm năng có thể theo đuổi các chiến lược bất kể cho dù họ đang sản xuất, Dịch vụ hoặc phi lợi nhuận doanh nghiệp; họ đều có chung ' bởi vì họ có thể được theo đuổi trên các loại khác nhau của industries.12Chi phí lãnh đạoA company pursuing a cost-leadership business model chooses strategies that do everything possible to lower its cost structure so it can make and sell goods or ser¬vices at a lower cost than its competitors. These strategies include both functional strategies designed to improve its operating performance and competitive strategies intended to influence industry competition in its favor. In essence, a company seeks to achieve a competitive advantage and above-average profitability by developing a cost-leadership business model that positions it on the value creation frontier as close as possible to the lower costs/lower prices axis.Two advantages accrue to a company pursuing cost leadership. First, because the company has lower costs, it will be more profitable than its closest competitors, the companies that compete for the same set of customers and charge similar low prices for their products. Second, the cost leader gains a competitive advantage because it is able to charge a lower price than its competitors because of its lower cost struc¬ture. Offering customers the same kind of value from a product but at a lower price attracts many more customers, so that even though the company has chosen a lower price option, the increased volume of sales will cause profits to surge. If its competi¬tors try to get lost customers back by reducing their prices and all companies start to compete on price, the cost leader will still be able to withstand competition better than the other companies because of its lower costs. It is likely to win any competi¬tive struggle. For these reasons, cost leaders are likely to earn above-average profits. A company becomes a cost leader when its strategic managers make the following competitive positioning decisions.Competitive Positioning Decisions The cost leader chooses a low to moderate level of product differentiation relative to its competitors. Differentiation is expensive; the more a company spends resources to make its products distinctive, the more its costs rise.13 The cost leader aims for a “sufficient” level of differentiation obtainable at low cost.14 Walmart, for example, does not spend hundreds of millions of dollars on store design to create an attractive shopping experience as chains like Macy’s, Dillard’s, or Nordstrom’s have done. As Walmart explains in its mission statement, “We think of ourselves as buyers for our customers, and we apply our considerable strengths to get the best value for you.” Such value is not obtained by building lavish stores.15 Cost leaders often wait until customers want a feature or service before providing it. For example, a cost leader like Vizio or Phillips is never the first to offer the state-of-the-art picture or sound quality; they increase their LCD TV capabilities only when it is obvious that