An efficiency frontier shows of the complete picture of all the different positions that a company can adopt with regard to differentiation and low cost, assuming that its internal functions and organizational arrangements are configured efficiently to support a particular position.

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An efficiency frontier, also known as a "productivity frontier" or "production possibility frontier," shows all of the possible combinations of cost and differentiation that a company can achieve given its internal functions and organizational arrangements. This includes positions that are both low cost and differentiated, as well as positions that prioritize one over the other. The efficiency frontier is an important tool for strategic planning and helps companies understand the trade-offs associated with different positioning strategies.

An Efficiency Frontier Shows of the Complete Picture of All