Several studies have shown that a differentiation strategy is more likely to generate higher profits than a cost-leadership strategy.

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Several studies have found that firms that focus on differentiation are better positioned to charge premium prices and generate higher profits compared to those that adopt a cost-leadership strategy. This is because a differentiation strategy involves creating unique products or services that are difficult to replicate, thereby giving the company a competitive advantage and allowing it to charge a premium price. In contrast, cost-leadership involves offering products or services at a lower cost than competitors, which can be difficult to sustain over the long term and may not necessarily lead to higher profits.

Several Studies Have Shown That a Differentiation Strategy Is More