Value Drivers and Cost Drivers


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Value Drivers and Cost Drivers


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If choosing this option, please submit a memo (one page) that includes the following:

  • Pick one company that has a strong differentiation advantage, explaining its “value drivers”. Also pick one company that has a strong cost advantage, explaining its “cost drivers”. Refer to the textbook on the definition and types of value and cost drivers. Exclude companies that are assigned as class examples (Starbucks, Apple, Amazon, Tesla, Netflix, Alphabet, Disney, Samsung Electronics)
  • Separately, discuss how Ikea achieves both cost and differentiation advantage. Read the articles posted in Canvas Files and also do your own internet search. Rather than discussing the two separately, try to discuss how certain actions/initiatives save cost while keeping/increasing value, or vice versa (increasing value while maintaining/decreasing cost).

Please write in structured paragraphs using bullet points and headings where appropriate.