Question: Please help: Cost Leadership sometimes gets a bum rap as being the boring competitive strategy compared with a differentiation strategy. Do you agree with this
Please help: Cost Leadership sometimes gets a bum rap as being the "boring" competitive strategy compared with a differentiation strategy. Do you agree with this point of view? Why is this likely to be an unfair characterization?
Help to Rephasing my answer in a better way.
When you have a differentiated strategy, u can increase the customer perceived value of your product, which allows you to alter your cost structure and therefore charge more for your product.
A firm can achieve a competitive advantage by figuring out a way to raise willingness to pay a great deal with only a slight increase in cost or get significant cost savings with a slight decrease in a customer's willingness to pay.
Based on this, a firm could consider the low-cost leader to be a boring strategy but
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