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A specific cost position can significantly affect a business's competitiveness. If a business can maintain a lower cost position, it can offer its products or services at a lower price than its competitors, which can attract more customers and increase market share. On the other hand, if a business has a higher cost position, it may need to justify these higher costs with superior quality, unique features, or additional services. Otherwise, it may lose customers to competitors with lower prices.
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For instance, other dimensions to measure could be brand identity, distribution channels, quality or technology, level of vertical integration, or specific cost position or services offered. In this case, the y-axis represents price and quality while the x-axis highlights the geographic coverage of competitors, or how many locations they have throughout the world. You then group the players according to where they land and plot them on the map.
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Do you feel trapped to outdo competitors? Better strategies can build a stronger defense against competition and generate higher ROI on your strategic...
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