Empresariales

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Best-Cost Provider Strategy:

(although not one of Porter's basic four strategies, this strategy is mentioned by a number of other writers.)

This isa strategy of trying to give customers the best cost/value combination, by incorporating key good-or-better Decathlon product characteristics at a lowercost than Decathlon’s competitors.
This strategy is a mixture or hybrid of low-price and differentiation, and targets a segment of value-conscious buyersthat is usually larger than a market niche, but smaller than a broad market. Successful implementation of this strategy requires Decathlon to have theresources, skills, capabilities (and possibly luck) to incorporate up-scale features at lower cost than their competitors.
This strategy could be attractive inmarkets that have both variety in buyer needs that make differentiation common and where large numbers of buyers are sensitive to both price and value.
Portermight argue that this strategy is often temporary, and that a business should choose and achieve one of the four generic competitive strategies above.Otherwise, the business is stuck in the middle of the competitive marketplace and will be out-performed by competitors who choose and excel in one of the fundamentalstrategies. His argument is analogous to the threats to a tennis player who is standing at the service line, rather than near the baseline or getting to thenet. However, others present examples of companies like Decathlon who seem to be able to pursue successfully a best-cost provider strategy, with stability.
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