Why is C the best illustration of a differentiation strategy?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Why is C the best illustration of a differentiation strategy?
Value
Cost
Disadvantage
Firm A
(V-C)A
CA
Competitive Position
Firm B:
Differentiator
O C's price is higher which signals higher quality
OB has lower costs than C
(V-C) B
CB
Advantage
A's lower price puts it into a different strategic group
OC has higher costs than B which is typical of firms that differentiate.
Firm C:
Differentiator
(V-C)c
Cc
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