Different Types of Production Strategies
The unlike types of production strategies are grouped, listed in addition to explained nether next iii categories, viz.,
The types of production strategies nether Business Strategies are equally follows:
- Differentiation strategy
- Cost leadership strategy
- Market division strategy
The production strategies nether Competitive Priorities are equally 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 equally follows
- Flexible answer strategy
- Low cost strategy
The types of production strategies listed inward a higher house are discussed equally follows:
1. Differentiation strategy
Under a differentiation strategy, the companionship tries to live unlike in addition to unique from its competitors. It may offering ameliorate quality, quantity, pricing, appearance, in addition to after sales-service, when compared to its competitors. It may offering to a greater extent than features in addition to facilities inward its product. It may live to a greater extent than flexible spell dealing amongst its customers. It may also offering quick in addition to ameliorate delivery of its products. So, at that spot are many ways, inward which a companionship tin rest unlike from its competitors. If it maintains this uniqueness in addition to departure inward its production character in addition to client service, in addition to then it tin accuse higher prices.
2. Cost leadership strategy
Under a cost leadership strategy, the companionship tries to trim back its cost of production. This is done yesteryear producing goods on a real huge scale. By doing so, the companionship volition larn 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, labour, advertising, sales promotion, R & D, etc. volition decrease.
3. Market division strategy
In market segmentation strategy, the companionship divides the marketplace pose according to the type of customers it has to focus in addition to target. It sells unlike products in addition to services to unlike types of customers. To plow over this goal, it produces in addition to sells goods in addition to services equally per the needs of the customers. Therefore, marketplace pose division strategy is also called Focus Strategy.
4. Price or cost strategy
Under cost or cost strategy, the companionship sells its production at a real depression price. This strategy is used when the products are homogeneous (same) inward nature. That is, when the customers cannot distinguish the company's production from the competitors' products. In this case, the companionship volition ready a depression price. So, the customers volition buy the company's production in addition to non the competitors' products.
5. Quality strategy
Under character strategy, the companionship produces in addition to sells high-quality goods in addition to services. The prices of such goods in addition to services are naturally real high. However, this strategy attracts those customers who prefer overstep character products in addition to are ready to pay necessary appropriate prices. The companionship must pay exceptional attending to the blueprint of its products. It must upgrade production blueprint in addition to add together novel production features to satisfy the electrical flow needs in addition to demands of its customers. Products which are designed badly volition naturally neglect inward the market. To gain success inward the market, the companionship must smartly invest to brand character innovative products that are complimentary from whatsoever defects.
6. Delivery strategy
Here nether delivery strategy, the companionship delivers its production in addition to services to their customers equally early on equally possible that likewise inside a fixed fourth dimension period. The companionship gives overstep priority to fast delivery of products in addition to providing quickest accessibility of services. Speed delivery of products in addition to fastest accessibility of services removes the work of scarcity in addition to unnecessary delays inward the market. Delivery strategy is used equally a selling tactic to create out cut-throat competition.
7. Product mix or flexibility strategy
Under this strategy, the companionship produces in addition to sells a production mix. H5N1 production mix is a grouping of products, which are sold yesteryear the same company. Here, the companionship does non depend entirely on ane production for its survival in addition to growth. It uses a production mix because it offers many advantages to the company. However, entirely large companies amongst huge production capacity tin role this strategy.
8. Service strategy
Under this strategy, the companionship uses a service to attract the customers. It gives quicker in addition to ameliorate after-sales service. It gives or so the clock, i.e. 24-hour client service. It may homecoming this service straight via the companionship or through the network of telephone outcry upward centres. Service is required for both consumer goods equally good equally industrial goods.
9. Eco-friendly products
Under eco-friendly strategy, the companionship produces in addition to sells environment-friendly products also called equally Green Products. For e.g. producing in addition to selling lead-free petrol to trim back pollution, manufacturing mercury-free tv set panels, etc., are some expert steps to save nature. This is a novel type of production strategy. It is used to trim back pollution in addition to protect the biosphere. Companies may also recycle surely materials similar plastic, metals in addition to papers. The properly recycled products are after used for manufacturing novel products in addition to inward packaging. Companies role biodegradable packing textile to trim back the work of waste product disposal. Recycling reduces continuous demand wheel of natural resources in addition to thus somewhat minimize the exploitation of environment. The companionship informs the populace near their environment-friendly manufacturing approach through advertisements.
10. Flexible answer strategy
Flexible answer strategy is said to live used when a companionship makes necessary changes inward its production plans that likewise inward accordance amongst the emerging changes inward the market. Here, importance is given to speed in addition to reliability. That is, the companionship must brand quick changes equally per the arising changes inward the marketplace pose demand. It must also live reliable. That is, it must give a regular render of goods to its customers. There must non live whatsoever shortage of goods inward the market. To plow over this, the companionship must follow a strict production schedule.
11. Low cost strategy
Under depression cost strategy, the companionship fights massive marketplace pose contest yesteryear selling its products at real lower prices. Simultaneously, it must also hold the character of its products. H5N1 companionship tin entirely sell its goods at minimum prices if it maintains a depression cost of production in addition to distribution. This tin live done yesteryear producing in addition to distributing goods on a large scale. That is, companionship must possess got payoff of economies of large-scale production.
