Question

Define and give at least two examples of the cost leadership competitive strategy and the differentiation competitive strategy?

Answer 1

Answer:

Competitive strategy::---} refers to a way of creating competitive advantage over competitors. It represents a greater value for the customer, created either by lower prices or by providing greater benefits and services that justify higher prices.

Cost strategy::--} is built on no-frills. Cost leadership strives towards cutting costs to a minimum possible levels in order to provide customers with lower prices and thus boost their savings. Cost strategy prerequisites normally relate to high technical capabilities and access to capital for the company to invest in technology and assure economies of scale.