dustry of operation.3.5Illustrations of potential strategic priority and critical activitiesPotential strategy and priority critical activities can be classified as follows.1.Compete as a low cost provider of goods and services.2.Compete as a high quality provider.3.Stress customer service.4.Provide rapid and frequent new products.3.5.1.Compete as low cost provider of goods and services Broadens Markets mainly due to the fact that more people will be able to afford the goods and services.Requires longer production runs and fewer product changes.This is because of the benefits that arise from the economies of scale. The longer the production runs, the more units that are produced and the lower the cost of production per unit.Fewer product changes would mean cost savings in terms of purchasing additional raw materials and those arising from process changeover costs e.g.Japanese car makers (Toyota)When Toyota mass production of its cars, its broadened as the cheaper vehicles were now affordable by a large market. This meant that they had to decentralize their operations and open up offices in many countries. Now we have many subsidiaries of the Toyota company e.g. Toyota Team Kenya, Toyota Team Europe.Further in order to be allow cost provider of cars, Toyota had to produce cars en mass. This meant that they had to introduce automated production lines, which could run 24-7-365. This saw the laying off front hose personnel.In order to save costs, Toyota makes very few changes to their vehicles. This saves on raw materials and process changeover costs.3.5.2.Compete as a high quality providerExampleIn the early 1990s Rolls Royce produced 6 hand-made vehicles. The revenues earned from the sale of these vehicles were enough to cover the companys costs and earn them profits.This is because the profits obtained per unit, and from toteRequired more quality assurance effort and higher operating costs.The quality assurance effort had to be stepped-u...
