Strategy – Carrier

Low Cost or High Value


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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