Outpacing

An outpacing strategy is a functional strategy formulated by Xavier Gilbert and Paul Strebel as part of a corporate strategy . The aim is to increase profitability by maximizing quality while minimizing costs.

concept

Four quadrants can be seen in the graphic opposite. The upper left quadrant and the lower right quadrant correspond to Michael E. Porter's generic strategies . Companies that are in the quadrant left above, due to their high quality expertise and a lack of cost- quality leader . Enterprises in the quadrant at the bottom right are cost leaders . Companies that are in the lower left quadrant have the problem of a lack of cost efficiency and quality, so they have to pursue other strategies such as customer loyalty management.

The increase in the number of providers on a market or the skimming of an attractive - more price-conscious - customer segment can induce a company that prefers a quality focus to carry out a price reduction . Such a drop in prices shouldn't compromise quality. In the case of high-priced premium goods, however, there is always the risk of image loss. Implementing a multi-brand strategy can help here. For example, at that time it was possible for Daimler-Benz - with relatively little risk for the image-rich Mercedes-Benz brand - to dare to launch the smart . Conversely, the cost leader the chance to already low due to higher production margins and prices were stable quality improvements to generate revenue growth or achieve even a new customer segment ( Hyundai ).

literature

Xavier Gilbert, Paul Strebel: Strategies to outpace the competition . In: Journal of Business Strategy . tape 8 , no. 1 , 1987, ISSN  0275-6668 , pp. 28-36 , doi : 10.1108 / eb039185 .

Harald Hungenberg: Strategic Management in Companies. Goals, processes, procedures . 6th edition. Gabler, Wiesbaden 2011, ISBN 978-3-8349-2546-6 , pp. 206-212 .