The company's gargantuan volume allows it to keep costs below many of its competitors.
"Huawei is going to be able to execute on smartphones at lower costs than some of its international competitors, " he said.
As I wrote last June, its value chain let Dell set its costs 14% below those of competitors like Compaq (that HP bought in 2002) while charging companies a 13% higher price because of the convenience its online purchasing process gave companies who could order PCs configured for their specific requirements.
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Hence, if an oil delivery business can capture 100% of the business in a particular neighborhood, it will have lower costs than competitors and may choose to pass those lower costs on to customers in the form of lower prices that helps it close delivery deals with more homes in a neighborhood.
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If Robert Reich wants to praise Ford for his relentless effort to reduce labor costs, drive his competitors out of business, make horse-drawn transport obsolete, and become fabulously wealthy by offering the best valued products to the largest number of customers, sign me up.
CEBR, a British economic consultancy, calculated last year that the strong pound added roughly 12% to the British steel industry's costs relative to those of its chief international competitors.
Best Buy is trying to improve its website by enhancing its online product descriptions and selection, but it faces higher operating costs than its online-only competitors due to the high labor costs and long-term leases of its more than 1, 400 stores.
Its production costs are lower than those of any of its competitors.
Creative failure, bloated costs, the emergence of new technology and new competitors.
The parliamentary select committee on transport, which conducted a detailed inquiry into the industry this summer, concluded that its costs were not out of line with its European competitors.
We offer a lot of different upgrades, but we keep costs down to undercut competitors.
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Cutting those costs has become even more urgent since many of Argentina's competitors now enjoy similarly low inflation rates but are not tied to the strong dollar.
With limitless funds, it could snap up firms in each of its three businesses, driving down costs and using scale to fluster competitors.
If an older workforce simply meant increased costs, then managers could take comfort from the fact that most of their competitors would be in the same boat.
Another 40% of revenue will help industries to lower their costs by switching to cleaner forms of energy, if they face competition from untaxed foreign competitors.
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Brokerage firms figure that any number of their competitors would just love it if someone else would pick up the training costs for all the newbies.
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Its attempt to manage high costs through short-term price increases backfired as the competitors did not follow suit, leading to a loss of market share.
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Regulators would also need to act as surrogate competitors in another way: by making sure that a squeeze on costs does not lead to a strangling of services.
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