There are very few companies that are able to be both cost leaders and differentiators. Why? Can you think of a company that has been successful at both? Brief explanation please.© BrainMass Inc. brainmass.com October 2, 2020, 2:12 am ad1c9bdddf
According to the Porter's Generic Strategies there are three business strategies a company can use so as to gain an added advantage of customers consuming their good and services in the economy. These strategies include; Focus Strategy. Here the company focuses in the production of a particular commodity or specializes on giving a particular service to the customers. Cost leadership Strategy is the other strategy an organization can use. The objective of this strategy is aimed at the price sensitive consumer needs by producing goods or services at an average market price in an economy. The third strategy is by Differentiation. Here the organization gains a competitive advantage in the market through diversifying the kind of goods and services issued to the consumers ...
This solution discusses why few companies are both cost leaders and differentiators.