There are 2 strategies a company can adopt: cost leadership and product differentiation.
We should choose company to invest in base on which company can implement the 2 strategies most successfully among their peer group.
I am not interested in price war that who can sell the cheapest product, I am more interested in who has the cheapest cost structure, because it sure can provide the cheapest price among it's rival.
We can know who has the most cheapest cost structure by examine the company's annual report over long term.
We can know who implement product differentiation strategy most successfully by looking into market; which product is the most popular, which product can sell at higher price but still a lot people buying, what are the hot topic people are talking about. Those are the product difficult to be replaced, whether is the brand, the quality,the special feature or unique design. Normally company need to have continuously the most creative and innovative employee to ensure this strategy can be successfully implemented over long term. They need to maintain the best working culture.
If can find company that able to adopt the 2 strategies successfully, that's perfect. Please share with me. Personally also ok. My email is ta000236@yahoo.com
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