Recent research shows that firms can simultaneously implement cost-leadership and product-differentiation strategies if they learn how to manage the ________ inherent in these two strategies.
A) consistencies
B) similarities
C) contradictions
D) superfluousness

Question

Quizplus · Accepted Answer

Cost-leadership and product-differentiation strategies are often seen as contradictory because cost leadership requires minimizing costs, while product differentiation requires investing in research and development to create unique and valuable products. However, recent research suggests that firms can successfully implement both strategies if they learn how to manage the contradictions inherent in them. This may involve finding ways to reduce costs without sacrificing the quality or uniqueness of the product, or developing innovative ways to create unique products at a lower cost. Therefore, the correct answer is C) contradictions.

Recent Research Shows That Firms Can Simultaneously Implement Cost-Leadership and Product-Differentiation