A company that simultaneously pursues the two basic competitive approaches but ends up with costs that are too high and a product that does not command a premium price may find itself:
A) With profit margins higher that the industry norm
B) Unable to purge its customer list quickly enough
C) Having to invest in other companies to become more profitable
D) "Stuck in the middle"

Question

Quizplus · Accepted Answer

When a company tries to simultaneously pursue both low cost and differentiation strategies, it may find it difficult to achieve either of them effectively, resulting in being "stuck in the middle". This can lead to higher costs and lower profits, making it difficult for the company to compete with rivals who specialize in either low-cost or differentiation strategies.

A Company That Simultaneously Pursues the Two Basic Competitive Approaches