By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success.

Question

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A straddling strategy, which attempts to combine different competitive strategies (like cost leadership and differentiation), often leads to a firm being "stuck in the middle" and unable to effectively compete with more focused firms that excel in either cost leadership or differentiation in markets that demand specialization.

By Following a Straddling Strategy, Firms Can Broaden Their Capabilities