Michael E. Raynor and Mumtaz Ahmad

Avatar
1 POSTS 0 COMMENTS

3 Rules for Understanding How Value Leads to Better Performance

The first rule is “Better Before Cheaper": being price competitive is far from irrelevant but when it comes to position in a market, exceptional performance is caused most often by greater non-price value rather than lower price. There are two dimensions of value along which any company can differentiate itself: price value and non-price value. Research reveals that exceptional companies typically focus on non-price value, even if that means they have to charge higher prices. Price-based competition is a legitimate strategy. Competing with better, rather than cheaper is systematically associated with better long-term performance.
- Advertisement -
- Advertisement -

SUBSCRIBE TO CHIEF EXECUTIVE

Sign Up to Receive Chief Executive Magazine

Chief Executive’s publications are designed to help CEOs do their jobs better and run their businesses more effectively. Subscribe here.

CEO CONFIDENCE INDEX

CEO Confidence Continues To Climb In January

Chief Executive’s latest poll of more than 230 CEOs finds optimism in 2021 business conditions on track and steady after the tumult of 2020.