BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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May be
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Detailed explanation-1: -Yes, a company or business unit can follow a cost leadership strategy and a differentiation strategy simultaneously. If a firm is concentrating on applying both business strategies simultaneously, it helps in gaining diverse benefits like premium prices and lower costs at the same time.
Detailed explanation-2: -There are two basic types of competitive advantage a firm can possess: low cost or differentiation. A business may adopt these strategies in many different segments or focus on a specific niche. A business that is not a cost leader or is not differentiated is likely to be ‘caught in the middle’ and not be profitable.
Detailed explanation-3: -Cost Leadership-Minimizing the costs incurred in providing value (product or service) to a customer or client. Differentiation-This means making ones product unique or special, compared to other competitors or substitute products in the market.