A company pursuing a differentiation strategy must still achieve parity on costs in those areas where it is undifferentiated from rivals.

Question

Quizplus · Accepted Answer

While a company pursuing a differentiation strategy focuses on offering unique or superior products or services, it cannot ignore cost considerations. It must still achieve parity on costs in those areas where it is undifferentiated from rivals to remain competitive. Failing to maintain cost parity could lead to losing price-sensitive customers to competitors who offer similar products or services at a lower cost.

A Company Pursuing a Differentiation Strategy Must Still Achieve Parity