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    Business Strategy: Competitive Differentiation or Low Price

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    Competitive Differentiation actually is a strategy for those who can't succeed with the alternative strategy of Low Price. How does Differentiation allow this to happen?

    Also, which strategy do most businesses use, Low Price or Comp. Diff.? Why?

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    Competitive differentiation is the perception that the products or the company is uniquely positioned against other products and companies. It is the life blood of every organization because without competitive differentiation, an organization cannot attract venture capital from investors. A newly formed company invests in competitive differentiation in the development of its products while complacency sets in as its products mature making the company vulnerable to the competitor's attack.

    While all companies are reducing costs, vendors are also being pressured to reduce their prices. ...

    Solution Summary

    The solution explains how competitve differentiation is used as an alternative strategy for low price. References are included.