Notes on Reader Articles - module 1

Notes on Reader Articles - module 1 - Notes on Reader...

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Notes on Reader Articles: Topic:Product Article: The race to build really cheap cars (Product Classes) Renault-Nissan is the first global automaker to take up the gauntlet thrown down in 2003  by India's Tata Motors. Redesigning the car for buyers who might otherwise be able to afford only a motorcycle. Demand is surging for basic cars that combine modern comfort with safety at a fraction  of today’s costs Renault released the LOGAN SEDAN in Europe…can’t even meet demand (there is  TOO Much demand) “The main weakness of today’s global automakers is that they are incapable of  delivering a car that fulfills basic needs at a very low price. The people who have these  skills are in China and India.” KEY: India’s low-cost engineers and their ability to trim needless spending to the bone o Must cut costs on everything during production Every company is coming out with its own low cost model. Combine Indian brainpower with western design, materials and processes = cost- reduced vehicles without major sacrifices in quality. Volume sales in new markets can make dirt-cheap cars profitable (drawback: hard  to be profitable) Renault-Nissan 1) reduced total number of parts = increased efficiency of assembly and  2) ELIMINATED EXPENSIVE PROTOTYPES AND PRICEY TOOLING IN BUILDING.
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Article: Small Print Jobs for Peanuts VistaPrint puts slickly finished products within the reach of the small businesses by  combining online design tools for customers with sophisticated printing systems.  This ELIMINATES HIGH-COST DESIGN AND MAKES THE MOST OF EVERY  SCRAP OF PAPER AND DRAM OF INK. -> prices are 80-90% cheaper. Postcards from different customers end up on one sheet of paper.  Cut orders in jigsaw fashion – little waste UNLIKE KINKOS THAT ADDRESSES EACH  JOB SEPARATELY. Customers use programs and 90% orders are uploaded online by customers or done  online. Has a lead over kinkos because kinkos failed to gain traction during the Web Boom Concept: Price Article: The Power of Smart Pricing Market segmenting to get segmenting to get customers to pay their highest WTP Ford cut prices on its most profitable vehicles enough to spur demand but not so much 
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