Article at a glance:

When your competitor delivers more for less

Companies offering the powerful combination of low prices and high quality have captured the hearts and wallets of consumers in the United States and Europe. This economy-wide shift to value cuts across most ages, consumer segments, and income groups. The consequences can be dire for incumbents. To compete they will have to find sources of differentiation, keep costs in line, and manage pricing effectively—tactics that competitors of all stripes must employ with greater intensity and focus.

The take-away

Value-driven competitors have altered consumer expectations about how much quality they must trade off for low prices. This shift, which places a new premium on differentiation and execution, is only beginning.