Strategy – Carrier

Low Cost or High Value

Low-cost-high-quality

http://thesalesblog.com/blog/2016/02/13/why-the-factory-is-moving-south/

Many companies have moved their manufacturing to other countries….Carrier won’t be the last one.

The key business issue is that there will always be some other country that is low-cost.

Starbucks (2.22.16 post) added value and quality to its products….and thus expanded the market.

If all a business does is compete on low cost….there will always be another to come along with a lower cost. At some point to be a viable….profitable company….add value to a product and thus make it more desirable to the ultimate decider of the future of the company….the customer.

In our business, there was a low-cost competitor nearby….our strategy was not to enter that low cost-low value market….it was to provide better products and better value for our customer.

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