Chapter 7

Low cost

The aim of the low-cost strategy is to deliver acceptable levels of customer PUV but with a continuous and relentless focus on cost reduction. Critical to successfully executing the low-cost strategy is a detailed knowledge of customer needs and what they really value in our products. With this understanding, it is possible to identify and strip out unnecessary expenditures which don’t deliver $PUV. When pursuing a low-cost strategy, obtaining continuous customer feedback is vital to ensure that cost reductions do not damage PUV.

This strategy is designed to deliver equivalent PUV at lower costs. The products remain the same, the customers served remain the same, but the unit cost of producing the products is continually ...

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