http://www.rocketwatcher.com/blog/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html by April Dunford Thu, 09 Feb 2012 15:09:26 +0000 hourly 1 http://wordpress.org/?v=3.3 http://www.rocketwatcher.com/blog/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html/comment-page-1#comment-412 Andreas Rudolph Fri, 17 Apr 2009 17:09:56 +0000 http://www.aprildunford.com/http:/www.aprildunford.com/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html#comment-412 Hi April, you are right. Reacting to a down turn with pricing alone is certainly problematic, as you can put your complete value story under pressure. What many companies in countries with financial crisis (i.e Latin America) did, is much more promising: - Go from top to bottom (offer simpler products with less features, but at a lower price) - Offer assistence in terms of payment (in financial crisis the people are still somehow rich, what makes the most problem is the liquidity - either they increase saving rate, or they do not want to sell their assets under value, just to consume)... regards, Andreas Hi April,
you are right. Reacting to a down turn with pricing alone is certainly problematic, as you can put your complete value story under pressure. What many companies in countries with financial crisis (i.e Latin America) did, is much more promising:
- Go from top to bottom (offer simpler products with less features, but at a lower price)
- Offer assistence in terms of payment (in financial crisis the people are still somehow rich, what makes the most problem is the liquidity – either they increase saving rate, or they do not want to sell their assets under value, just to consume)…
regards,
Andreas

]]> http://www.rocketwatcher.com/blog/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html/comment-page-1#comment-791 Stewart Rogers Tue, 06 Jan 2009 06:14:49 +0000 http://www.aprildunford.com/http:/www.aprildunford.com/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html#comment-791 <span class="topsy_trackback_comment"><span class="topsy_twitter_username"><span class="topsy_trackback_content">@aprildunford Great post! Reading all about this stuff now. "The risks of a low cost provider strategy... http://bit.ly/GFEV"</span></span> @aprildunford Great post! Reading all about this stuff now. “The risks of a low cost provider strategy… http://bit.ly/GFEV“

]]> http://www.rocketwatcher.com/blog/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html/comment-page-1#comment-411 Michael Ray Hopkin Mon, 05 Jan 2009 23:00:27 +0000 http://www.aprildunford.com/http:/www.aprildunford.com/2009/01/the-risks-of-a-low-cost-provider-strategy-even-in-a-recession.html#comment-411 April, you've hit on a pertinent topic; many are grappling with this right now. The price vs. differentiation question is relevant and one companies should give serious consideration. Another topic I think merits consideration is the "who" of the market. If companies are targeting the right customers in the market, and their products solve the right problems, people will pay for them--even in tough times. Before a company drops the price for one of its products, the marketing team should take a close look to make sure they're targeting the right customers. -Michael April, you’ve hit on a pertinent topic; many are grappling with this right now. The price vs. differentiation question is relevant and one companies should give serious consideration.
Another topic I think merits consideration is the “who” of the market. If companies are targeting the right customers in the market, and their products solve the right problems, people will pay for them–even in tough times. Before a company drops the price for one of its products, the marketing team should take a close look to make sure they’re targeting the right customers. -Michael

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