1. Value players like Walmart, Dell, and Southwest Airlines combine low prices with good enough quality to gain market share from incumbent competitors. 2. Incumbents face cost disadvantages and lack differentiation, making them vulnerable to value players that seize opportunities through low prices, effective pricing, and maximizing margins. 3. Value players attract more customers through low prices, improving sales productivity and profitability through economies of scale, and starting a virtuous cycle of dropping prices to bring in more customers.

1. When Your Competition Delivers More For Less Srini Kumar MBA 260G Marketing Strategy