Cost Leadership

Cost leadership is a very essential strategic consideration for the success of a business in any industry. As I ave said from the outset of this blog, it is, sometimes, difficult to assign tangible values to a financial service company's strategies. This especially applies to cost leadership, as the products that UBS offers are based on their role as an intermediary between two parties a lot of the time. The service they provide is compensated by fees and sales loads, and UBS does not have to maneuver the same way a merchandise company (for example) may have to by dealing with suppliers, logistics, and product maintenance. Oddly, UBS is a company that provides both a service, at times, and a product, at times. Economies of scale do not seem to affect a business like UBS, as their products are specific to the consumer's needs and the inherent design and quality of the product itself(e.g. a mutual fund). I have been very intrigued by analyzing UBS with respect to the format and expectations of this blog. With continued excellence in company management, UBS will continue to thrive on a more applicable strategic focus: product differentiation.