Cost and differentiation strategies are similar in terms of their potential to confer sustainable competitive advantage.

Question

Quizplus · Accepted Answer

Cost and differentiation strategies differ fundamentally in how they achieve competitive advantage: cost leadership focuses on becoming the lowest cost producer, while differentiation seeks to provide unique value that allows for premium pricing. Their sustainability depends on different factors such as the ability to continuously lower costs or innovate.

Cost and Differentiation Strategies Are Similar in Terms of Their