The combination strategy of low-cost and differentiation provides lower prices and no differentiated attributes for customers.

Question

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Perhaps the primary benefit to firms that integrate low-cost and differentiation strategies is the difficulty for rivals to duplicate or imitate. This strategy enables a firm to provide two types of value to customers: differentiated attributes (e.g., high quality, brand identification, reputation) and lower prices (because of the lower costs for the firm in value-creating activities).

The Combination Strategy of Low-Cost and Differentiation Provides Lower Prices