[solved] To achieve a cost advantage over rivals, a company
must either do a better job of performing value chain activities more cost-effectively than rivals and/or else cut costs by revamping its overall value chain to eliminate or bypass some cost-producing activities.
must either use the company's bargaining power vis-a-vis suppliers to gain cost-saving concessions or else sell direct to consumers in order to cut out the activities and costs of distributors and dealers.
minimize the use of cost drivers in performing value chain activities.
offer a limited selection of models and styles (as opposed to a wide selection), pursue efforts to boost sales volumes and thus spread such costs as R&D, advertising, and selling and administrative costs out over more units, and pursue either a low-cost provider strategy or a focused low-cost strategy.
must succeed in substituting the use of low-cost for high-cost raw materials and component parts and/or strip frills and features from its product offering that are not highly valued by price sensitive or bargain-hunting buyers.