Outpacing strategies
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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
