4(H) Flashcards
1
Q
Porter’s lower cost strategy
A
Porter’s lower cost strategy involves a business offering customers similar or lower-priced products compared to the industry average, while remaining profitable by achieving the lowest cost of operations among competitors.
- no-frills
- economies of scale (bulk buying)
2
Q
Porter’s differentiation strategy
A
Porter’s differentiation strategy involves offering customers unique services or product features that are of perceived value to customers, which can then be sold at a higher price than competitors.
- innovation