How can an organization create price points and costs that are lower than those of its competitors? improve efficiency incorporate mass customization eliminate diseconomies of scale lengthen the experience curve

To create price points and costs that are lower than those of competitors, an organization can implement several strategies. Let's break down the options provided: 1. **Improve Efficiency**: - Streamlining operations can significantly reduce costs. This can be achieved through process optimization, adopting lean manufacturing principles, and utilizing technology to automate tasks. By improving efficiency, the organization can lower production costs and pass those savings on to customers in the form of lower prices. 2. **Incorporate Mass Customization**: - Mass customization allows companies to produce goods tailored to individual customer preferences while still maintaining the efficiencies of mass production. By leveraging technology and flexible manufacturing systems, organizations can offer customized products at competitive prices, attracting a broader customer base without significantly increasing costs. 3. **Eliminate Diseconomies of Scale**: - Diseconomies of scale occur when a company grows too large and experiences increased per-unit costs. To avoid this, organizations can focus on maintaining optimal production levels, ensuring that they do not overextend their resources. This might involve decentralizing operations or outsourcing certain functions to maintain flexibility and control costs. 4. **Lengthen the Experience Curve**: - The experience curve suggests that as organizations produce more, they become more efficient, leading to lower costs per unit. By investing in training, improving processes, and learning from past production experiences, organizations can enhance their efficiency over time. This can lead to reduced costs and the ability to offer lower prices than competitors. ### Conclusion To effectively lower price points and costs compared to competitors, an organization should focus on improving efficiency, incorporating mass customization, eliminating diseconomies of scale, and leveraging the experience curve. Each of these strategies contributes to a more competitive cost structure, enabling the organization to attract and retain customers through lower prices.