Lean Strategy - Explained
What is a Lean Strategy?
Written by Jason Gordon
Updated at April 7th, 2022
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is a Lean Strategy?
Lean strategies focuses on producing more with less input. Thus, it seeks to eliminate waste throughout the entire manufacturing process. Efficiency can be achieved in two ways:
- Technical Efficiency Here, a firm that produces the maximum amount of products given limited resources and capital is said to be technically efficient.
- Economic Efficiency - This deals with minimizing manufacturing costs through wise allocation of resources to achieve the best output. A firm whose main goal is maximizing profits should also efficiently allocate resources to keep costs down.
Lean strategies seek to enhance the technical efficiency of a firm, methodologies, and processes. Lean firms reduce wasted time, human resources, and space.
Back to: STRATEGY & PLANNING
Related Topics
- Competitive Strategies
- Functional Strategies
- Organizational Strategies
- Operational Strategy
- Contestable Market Theory
- Value Disciplines
- Porter's Generic Strategies
- Differentiation (Strategy)
- Commoditize
- Niche Market Strategy
- Long Tail
- Low-Cost Production
- Resource-Based View of the Firm
- Ansoff Matrix
- Customer-Centric Strategy
- Blue Ocean Strategy
- Overfished Ocean Strategy
- Hedgehog Concept (Strategy)
- Innovation Strategy
- Bleeding Edge
- Disintermediation (Strategy)
- Strategic Alliance
- Coopetition (Strategy)
- Loss Leader Strategy
- Lean Strategy
- Game Theory Perspectives
