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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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Solution Summary

The solution defines cost leadership and differentiation strategies.

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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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Edwin Sinclar, MBA
Education
  • MBA, Aspen University
  • Bachelor of Science , Berea College
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