Digital Woodcrafters Inc. is a recently established online vendor that sells custom luxury products made from wood on automated lathes. Before opening for business, the company studied the problems that companies using a similar technology had experienced. Digital Woodcrafters was therefore able to avoid their costly mistakes. Digital Woodcrafters would be an example of a(n)

Question

Quizplus · Accepted Answer

Technology followership can be used to support both low-cost and differentiation strategies. If the follower learns from the leader's experience, it can avoid the costs and risks of technology leadership, thereby establishing a low-cost position.