different production strategies and its explanation

1. By:-
P. Joel Prakash
15N31E00H0
2015-17
MALLA REDDY COLLEGE OF
ENGINEERING &TECHNOLOGY

3.  Differentiation strategy
 Cost leadership strategy
 Market segmentation strategy

4. Under a differentiation strategy, the company
tries to be different and unique from its
competitors.
 More features and facilities in its product
 Flexible while dealing with its customers
 Quick and better delivery of its products

5. Under a Cost Leadership Strategy, the company tries
to reduce its cost of production
 Producing goods on a very huge scale by this strategy benefits of economies of
large scale.
Scale of Production
Cost of Production
Cost of Raw material
Labour, Advertising
Sales Promotion, R &
LOWER
HIGHER

6. Under market segmentation strategy, the
company divides the market according to the
type of customers it has to focus and target.
 Different products and services to different
types of customers
 The needs of the customers

7.  Price /Cost strategy
 Quality strategy
 Delivery strategy
 Product mix or flexibility strategy
 Service strategy
 Eco-friendly products

8. Under price or cost strategy, the company sells
its product at a very low price.This type of
strategy is used in these:
 Products are homogeneous (same) in nature.
 Customers cannot distinguish the company's
product from the competitor’s products.

9. Under Quality strategy, the company produces and sells
high-quality goods and services.
Pro’s:
 Prices of such goods and services are naturally very high
 Attract customers who prefer top quality products.
Con’s:
 Products which are designed badly will naturally fail in
the markets.
Precautions:
 Special attention to the design of its products.
 Upgrade product design such as add new product
features to satisfy the current needs and demands of its
customers

10. Under delivery strategy, the company delivers
its product and services to their customers as
early as possible that too within a fixed time
period.
 Speed delivery of products and fastest
accessibility
Delivery strategy is used as a selling tactic to
fight cut-throat competition.

11. Under this strategy, the company produces and
sells a product mix(a group of products,
which are sold by the same company)
 Survival and growth in market.
Only large companies with huge production
capacity can use this strategy.

12. Under this strategy, the company uses a service
to attract the customers. Service is required
for both consumer goods as well as industrial
goods.
 Quicker and better after-sales service.
 Around the clock
 Service directly or indirectly

13. Under eco-friendly strategy, the company produces
and sells environment-friendly products also called
as Green Products.
 Reduce pollution
 Protect the biosphere
 Use biodegradable packing material to reduce
package cost also.
 Informs the public about their environment-
friendly manufacturing approach through
advertisements.

14.  Flexible response strategy
 Low cost strategy

15. Flexible response strategy is said to be used when a
company makes necessary changes in its
production plans that too in accordance with the
emerging changes in the market.
 Speed and reliability
 Changes as per the arising changes in the market
demand
 Regular supply of goods to its customers.
 Follow Strict Production Schedule.

16. Under low cost strategy, the company fights massive
market competition by selling its products at very
lower prices & also maintain the quality of its
products
 Sell its goods at minimum prices if it maintains a
Low cost of production and distribution.
 Producing and distributing goods on a large scale.
 Company must take advantage of economies of
large-scale production.