A risk for a firm that tries to attain both cost and differentiation advantages is that it can be stuck in the middle.An example of this is supermarkets because their ________ structure is ________ than discount retailers,and customers do not value their products and services as being high-end such as those offered by Whole Foods.
A) cost; higher
B) price; higher
C) price; lower
D) cost; lower

Question

Quizplus · Accepted Answer

A key issue in strategic management is the creation of competitive advantages that enable a firm to enjoy above-average returns. Some firms may become stuck in the middle if they try to attain both cost and differentiation advantages. Mainline supermarket chains find themselves stuck in the middle as their cost structure is higher than discount retailers offering groceries and their products and services are not seen by consumers as being as valuable as those of high-end grocery chains, such as Whole Foods.

A Risk for a Firm That Tries to Attain Both