There are two basic strategies for improving a firm's profitability.These are:
A)a differentiation strategy and a low-cost strategy
B)a premier strategy and a generic strategy
C)a high-cost strategy and a low-cost strategy
D)a comparison strategy and a low-cost strategy
E)a diversification strategy and a low-cost strategy

Question

Quizplus · Accepted Answer

A differentiation strategy focuses on offering unique and valued products or services to customers, which allows the firm to charge premium prices and generate higher profits. A low-cost strategy, on the other hand, focuses on reducing expenses and offering products or services at a lower cost than competitors, which can also lead to increased profitability. By combining both strategies, the firm can differentiate its offerings while also keeping costs low, thus maximizing profits.

There Are Two Basic Strategies for Improving a Firm's Profitability