Different Types of Production Strategies
The unlike types of blogspot.com//search?q=what-are-production-strategies-meaning">production strategies are grouped, listed together with explained nether next 3 categories, viz.,
The types of production strategies nether Business Strategies are every bit follows:
- Differentiation strategy
- Cost leadership strategy
- Market division strategy
The production strategies nether Competitive Priorities are every bit follows:
- Price or cost strategy
- Quality strategy
- Delivery strategy
- Product mix or flexibility strategy
- Service strategy
- Eco-friendly products
The production strategies nether Competitive Advantages are every bit follows
- Flexible reply strategy
- Low cost strategy
The types of production strategies listed inwards a higher house are discussed every bit follows:
1. Differentiation strategy
Under a differentiation strategy, the society tries to live unlike together with unique from its competitors. It may offering amend quality, quantity, pricing, appearance, together with after sales-service, when compared to its competitors. It may offering to a greater extent than features together with facilities inwards its product. It may live to a greater extent than flexible piece dealing alongside its customers. It may also offering quick together with amend delivery of its products. So, at that spot are many ways, inwards which a society tin rest unlike from its competitors. If it maintains this uniqueness together with deviation inwards its production lineament together with client service, so it tin accuse higher prices.
2. Cost leadership strategy
Under a cost blogspot.com//search?q=what-are-production-strategies-meaning">leadership strategy, the society tries to cut back its cost of production. This is done past times producing goods on a real huge scale. By doing so, the society volition teach the benefits of economies of large scale. Higher the scale of production, lower volition live the cost of production. This is because per unit of measurement cost of raw materials, blogspot.com//search?q=what-are-production-strategies-meaning">labour, blogspot.com//search?q=what-are-production-strategies-meaning">advertising, sales promotion, R & D, etc. volition decrease.
3. Market division strategy
In blogspot.com//search?q=what-are-production-strategies-meaning">market segmentation strategy, the society divides the marketplace according to the type of customers it has to focus together with target. It sells unlike products together with services to unlike types of customers. To attain this goal, it produces together with sells goods together with services every bit per the needs of the customers. Therefore, marketplace division strategy is also called Focus Strategy.
4. Price or cost strategy
Under cost or cost strategy, the society sells its production at a real depression price. This strategy is used when the products are homogeneous (same) inwards nature. That is, when the customers cannot distinguish the company's production from the competitors' products. In this case, the society volition cook a depression price. So, the customers volition buy the company's production together with non the competitors' products.
5. Quality strategy
Under lineament strategy, the society produces together with sells high-quality goods together with services. The prices of such goods together with services are naturally real high. However, this strategy attracts those customers who prefer travel past times lineament products together with are ready to pay necessary appropriate prices. The society must pay particular attending to the pattern of its products. It must upgrade production pattern together with add together novel production features to satisfy the electrical flow needs together with demands of its customers. Products which are designed badly volition naturally neglect inwards the blogspot.com//search?q=what-are-production-strategies-meaning">market. To gain success inwards the market, the society must smartly invest to brand lineament innovative products that are complimentary from whatever defects.
6. Delivery strategy
Here nether delivery strategy, the society delivers its production together with services to their customers every bit early on every bit possible that every bit good inside a fixed fourth dimension period. The society gives travel past times priority to fast delivery of products together with providing quickest accessibility of services. Speed delivery of products together with fastest accessibility of services removes the occupation of scarcity together with unnecessary delays inwards the market. Delivery strategy is used every bit a selling tactic to struggle cut-throat competition.
7. Product mix or flexibility strategy
Under this strategy, the society produces together with sells a production mix. Influenza A virus subtype H5N1 production mix is a grouping of products, which are sold past times the same company. Here, the society does non depend alone on i production for its survival together with growth. It uses a production mix because it offers many advantages to the company. However, alone large companies alongside huge production capacity tin purpose this strategy.
8. Service strategy
Under this strategy, the society uses a service to attract the customers. It gives quicker together with amend after-sales service. It gives to a greater extent than or less the clock, i.e. 24-hour client service. It may homecoming this service direct via the society or through the network of telephone outcry upwards centres. Service is required for both consumer goods every bit good every bit industrial goods.
9. Eco-friendly products
Under eco-friendly strategy, the society produces together with sells environment-friendly products also called every bit Green Products. For e.g. producing together with selling lead-free petrol to cut back pollution, manufacturing mercury-free boob tube panels, etc., are some proficient steps to save nature. This is a novel type of production strategy. It is used to cut back pollution together with protect the biosphere. Companies may also recycle surely materials similar plastic, metals together with papers. The properly recycled products are after used for manufacturing novel products together with inwards packaging. Companies purpose biodegradable packing fabric to cut back the occupation of waste product disposal. Recycling reduces continuous demand wheel of natural resources together with thus somewhat minimize the exploitation of environment. The society informs Earth virtually their environment-friendly manufacturing approach through advertisements.
10. Flexible reply strategy
Flexible reply strategy is said to live used when a society makes necessary changes inwards its production plans that every bit good inwards accordance alongside the emerging changes inwards the market. Here, importance is given to speed together with reliability. That is, the society must brand quick changes every bit per the arising changes inwards the marketplace demand. It must also live reliable. That is, it must orbit a regular render of goods to its customers. There must non live whatever shortage of goods inwards the market. To attain this, the society must follow a strict production schedule.
11. Low cost strategy
Under depression cost strategy, the society fights massive marketplace contest past times selling its products at real lower prices. Simultaneously, it must also keep the lineament of its products. Influenza A virus subtype H5N1 society tin alone sell its goods at minimum prices if it maintains a depression cost of production together with distribution. This tin live done past times producing together with distributing goods on a large scale. That is, society must own got wages of economies of large-scale production.
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