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Cost Leadership vs. Differentiation Strategy

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Can a business unit, or firm, follow both a cost leadership strategy and a differentiation strategy simultaneously? Why or why not? Provide examples.

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Cost leadership firms are low cost producers at a given level of quality. Companies that practice cost leadership strategy sell products at or below average industrial price to earn market share and make profit in the process. Cost leadership requires that the firm have access to low cost raw ...

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The solution defines cost leadership and differentiation strategies.

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Compare a low-cost strategy vs differentiation strategy

Identify two companies - one you believe pursues a low-cost strategy and another that pursues a differentiation strategy. Relying on personal knowledge, company annual reports, or articles in newspapers, Internet and/or business periodicals, discuss your chosen companies' competitive strategies.

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