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The argument is based on the fundamental that differentiation will incur costs to the firm which clearly contradicts with the basis of low cost strategy and on the other hand relatively standardised products with features acceptable to many customers will not carry any differentiation [9] hence, cost leadership and differentiation strategy will ...
However, a generic strategy of differentiation popularized by Michael Porter (1980) proposed that differentiation is any product (tangible or intangible) perceived as “being unique” by at least one set of customers. Hence, it depends on customers' perception of the extent of product differentiation.
The book is divided into three parts: [2] The first part presents key concepts of blue ocean strategy, including Value Innovation – the simultaneous pursuit of differentiation and low cost – and key analytical tools and frameworks such as the strategy canvas and the four actions framework.
Porter wrote in 1980 that companies have to make choices about their scope and the type of competitive advantage they seek to achieve, whether lower cost or differentiation. The idea of strategy targeting particular industries and customers (i.e., competitive positions) with a differentiated offering was a departure from the experience-curve ...
[7] [8] [2] Price discrimination is distinguished from product differentiation by the difference in production cost for the differently priced products involved in the latter strategy. [2] Price discrimination essentially relies on the variation in customers' willingness to pay [8] [2] [4] and in the elasticity of their demand.
In business, a competitive advantage is an attribute that allows an organization to outperform its competitors.. A competitive advantage may include access to natural resources, such as high-grade ores or a low-cost power source, highly skilled labor, geographic location, high entry barriers, and access to new technology and to proprietary information.
Low-cost index funds vs. ETFs vs. mutual funds You can buy low-cost index funds as either an ETF or a mutual fund, and well-known indexes such as the S&P 500 will have both available. The list ...
It is a form of competition that requires firms to focus on product differentiation instead of pricing strategies among competitors. Such differentiation measures allowing for firms to distinguish themselves, and their products from competitors, may include, offering superb quality of service, extensive distribution, customer focus, or any ...