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Introduction to Business Architecture by Chris Reynolds

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Chapter 15. Price-Driven Business Structure

For some businesses, price is king. These businesses undercut the prices of all their competition in order to drive up their own sales volumes. Generally, these price-driven businesses are sellers of retail commodity products. In many cases, the business doesn’t care what it is selling, as long as it has commodity products that can be sold for less than any competitors. You don’t often see services offered by price-driven businesses because there are no cost savings to be gained by providing high volumes of services sales. The focus of these businesses, then, is to find the lowest-cost ways of obtaining and providing products, as well as to find as many cost-cutting efficiencies in the business as possible. ...

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