In what situation can a company have both differentiation and a low-cost position?
A) With innovation, a company can push out the efficiency frontier in its industry and can deliver more differentiation at a lower cost than its rivals.
B) The company chooses to focus on the commodity market.
C) The company focuses on improving the reliability of its product.
D) The company improves its customer service on point-of sale and after-sale customer interactions.
E) It is impossible to achieve both differentiation and a low-cost position.

Question

Quizplus · Accepted Answer

With innovation, a company can develop unique products or services that offer additional value to customers while also lowering costs through improved processes or efficiencies. This allows the company to differentiate itself from competitors while also offering competitive prices.

In What Situation Can a Company Have Both Differentiation and a Low-Cost