Difference between revisions of "Outpacing strategies"

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Latest revision as of 20:01, 27 August 2020

The underlying assumption that there is a need to choose between Cost leadership strategies and Differentiation strategies is that there is a trade-off: a high level of quality usually entails higher cost. A firm that tries both has the risk of becoming 'Stuck in the middle'.

The following factors can undermine the traditional trade-off's:

  • Development of new technologies
  • Wastefulness
  • Economies and scale and learning effects

Part of M8-S2 - Reading - Strategies for E-Business - Chapter 5 - Strategy options