Production Orientation
In
production
orientation,
managers
focus
strongly
on
production.
The
company's
operations
are
the
focus,
as
the
strategy
is
to
become
the
price
leader
in
the
niche,
i.e.,
to
offer
the
lowest-priced
products.
This
means
reducing
production
costs
in
order
to sell the lowest-cost product on the market and thus prevail over the competition.
OK, low-cost manufacturing - and how do you do that?
Leading
companies
could
try
to
source
their
raw
materials
more
cheaply
by
buying
in
larger
quantities
or
finding
other
suppliers
abroad,
for
example.
The
company
could
develop/implement
innovations
to
use
cheaper
materials
with
the
same
quality. Automation of production could reduce labor costs.
All these strategies belong to production orientation strategies.