Question 1 - consumer electronics are good examples Their...

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Question 1: Is it possible for a company or SBU to follow both cost leadership & Differentiation strategy at the same time? Why or Why not? Michael Porter argues that a business unit which is unable to achieve one of the competitive strategies is likely to be "stuck in the middle" of the competitive marketplace with no competitive advantage. That unit, according to Porter, is doomed to below-average performance. Research by Greg Dess and Peter Davis as well as by Rod White, suggests however, that this may not be the case. Examples can be found of businesses which have been able to jointly follow overall low cost and high quality differentiation strategy. Japanese companies such as Toyota in automobiles and Matsushita (Panasonic and National) in
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Unformatted text preview: consumer electronics are good examples. Their offer of low price and high quality created serious problems for those companies following only cost leadership in the U.S. So yes you can pursue a cost leadership strategy and a differentiation strategy at the same time, but you would probably be in a better position focusing on one or the other. If you want to be the Low Cost Provider then you need to be striving for efficiencies and economies of scale, and not focusing on trying to differentiate yourself from your competitors in any way other than price. Cutting prices and adding features are not impossible, but a bit of a magic trick....
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