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)
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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
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