A company with a low-cost position generally needs to give little thought to economies of scale or capacity utilization. These are more important to firms that choose to differentiate.

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A company with a low-cost position still needs to consider economies of scale and capacity utilization in order to maintain its cost advantage over competitors. These factors can help the company achieve even lower costs and improve operational efficiency. Differentiation-focused firms may prioritize investments in these areas in order to support their emphasis on product quality and uniqueness.

A Company with a Low-Cost Position Generally Needs to Give