KK7:Porters Generic strategies

Question 1

Porter’s lower cost strategy 

Answer 1

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.

Question 2

Porter’s differentiation
strategy 

Answer 2

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.