ABSTRACT
This chapter analyzes types of strategic choice associated with volume and cost-based sources of competitive advantage. The implementation of enterprise competition strategy may in the case be based on the exploitation of volume and scale, market share advantage, or cost-efficiency throughout the value chain, or all three. The chapter analyzes the "experience effect". The chapter looks at enterprise achievement of cost-based advantages, or more proactively a cost leadership position, through a cost-orientated strategic management of the value chain. It describes the large-scale manufacturers of middle-range hatchback, family and fleet saloon cars such as Toyota, General Motors, Ford, and Nissan, base their strategy on competitive pricing, and low cost international operations achieved through the various methods. The profit impact of market strategy (PIMS) database shows that businesses with large market shares enjoy a greater rate of return on investment than that of competitors with a smaller market share.
