If maintaining a low-cost position in the market is difficult, firms may seek a more differentiated position that will enable them to charge a premium price for their product.

Question

Quizplus · Accepted Answer

This statement is true. If a company cannot maintain a low-cost position, it may need to differentiate its product or brand in order to stand out in the market and charge a higher price for its unique features or value proposition. This can help the company to achieve a competitive advantage and achieve greater profitability despite higher costs.

If Maintaining a Low-Cost Position in the Market Is Difficult