Question: When choosing a business strategy why is it more effective for a company to go with the low-cost approach rather than differentiating their products and

When choosing a business strategy why is it more effective for a company to go with the low-cost approach rather than differentiating their products and services?

Both differentiation and the low-cost approach have their benefits. With differentiation company's can distinguish their products and services from other competitors, but when using low-cost the company is taking fewer risks and still making higher profits because of its lower operating costs.

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