ABSTRACT
Business process reengineering may have led to mass layoffs after it was hijacked by overzealous consultants and business leaders, but it has left us with some powerful tools and techniques with which to analyze and improve process. This chapter addresses the challenges of commoditization and it is useful to review the broad strategies organizations can follow when faced by a low cost competitor. The pressure of commoditization will continue to exert itself on organizations everywhere: the increasing impact of demographic change; the requirement to maintain a keen eye on costs in order to compete effectively within the global market; the pressure to outsource and offshore business activities to exploit the cost advantages of cheaper labour. Building a strong supply chain is an essential component of business success and as organizations grapple with low cost competition and a commoditized market, the requirement to make the supply chain work as smoothly as possible is a very real one.
