Michael E. Porter: Cost

Michael E. Porter is American engineer and economist. Explore interesting quotes on cost.
Michael E. Porter: 26   quotes 2   likes

“The firm achieving focus may also potentially earn above-average returns for its industry. Its focus means that the firm either has a low cost position with its strategic target, high differentiation, or both.”

Michael E. Porter

Source: Competitive strategy, 1980, p. 39

“Early entry is appropriate when the following general circumstances hold:
- Image and reputation of the firm are important to the buyer, and the firm can develop an enhanced reputation by being a pioneer.
- Early entry can initiate the learning process in a business in which the learning curve is important, experience is difficult to imitate, and it will not be nullified by successive technological generations.
- Customer loyalty will be great, so that benefits will accrue to the firm that sells to the customer first.
- Absolute cost advantages can be gained by early commitment to supplies of raw materials, distribution channels, and so on.”

Michael E. Porter

2008 edition, p. 248
Competitive strategy, 1980

Business , Learning , Success , Loyalty

“Low cost relative to competitors becomes the theme running through the entire strategy, though quality, service and other areas cannot be ignored.”

Michael E. Porter

Source: Competitive strategy, 1980, p. 35