W. Chan Kim: Cost

W. Chan Kim is South Korean economist. Explore interesting quotes on cost.
W. Chan Kim: 16 quotes1 like

“Value innovation requires companies to orient the whole system toward achieving a leap in value for both buyers. The simultaneous pursuit of differentiation and low cost.”

W. Chan Kim book Blue Ocean Strategy

Source: Blue Ocean Strategy, 2005, p. 17-18 (2016 extended edition)

“Struggling to stay ahead of your rivals? No need. Instead of trying to match or beat them on cost or quality, make the other players irrelevant--by staking out new market space where competitors haven't ventured.”

W. Chan Kim

Kim, W. Chan, and Renée Mauborgne. "Value innovation." Harvard Business Review, January 1997 (2008).

“Value innovation is created in the region where a company's actions favorably affect both its cost structure and its value proposition to buyers. Cost saving are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economics kick in due to the high sales volumes that superior value generates.”

W. Chan Kim book Blue Ocean Strategy

Source: Blue Ocean Strategy, 2005, p. 15

“The document normally kicks off with a lengthy description of current industry conditions and the competitive situation. Next is a discussion of how to increase market share, capture new segments, or cut costs, followed by an outline of numerous goals and initiatives. A full budget is almost invariably attached, as are lavish graphs and a surfeit of spreadsheets. The process usually culminates in the preparation of a large document culled from a mishmash of data provided by people from various parts of the organization who often have conflicting agendas… Executives are paralyzed by the muddle. Few employees deep down in the company even know what the strategy is.”

W. Chan Kim book Blue Ocean Strategy

Description of how an average strategic plan is being created. Kim further explains, that "... a closer look reveals that most plans don’t contain a strategy at all but rather a smorgasbord of tactics that individually make sense but collectively don’t add up to a unified, clear direction that sets a company apart—let alone makes the competition irrelevant. [p. 84]"
Source: Blue Ocean Strategy, 2005, p. 83-84 (2016 extended edition) As cited in: Paul R. Niven (2010). Balanced Scorecard Step-by-Step. p. 99