Benchmarking involves Areas in the total value chain system assess ways to improve efficiency and effectiveness. Implementing the best practices throughout the firm, particularly for high-value activities Collaborate closely with suppliers to identify mutual cost-saving opportunities Improving internal activities based on learning from other companies' "best practices." A statement should be graphic, focuses, directional, and have some wiggle room. strategy mission statement vision statement objectives is achieving a cost-based advantage over rivals. Broad differentiation strategy Best-cost provider strategy Low-cost provider strategy A focused low cost strategy The total economic value produced by a firm is equal to revenue - cost of goods value -cost cost-value value - cost of goods