Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively.

A

Companies try to innovate to gain a competitive advantage. Michael Porter described some generic strategies affecting competitive advantage. Two major strategies associated with innovation are differentiation and low cost. When entering new markets, companies often offer low-cost products to attract customers. However, this strategy is winning in the market where product costs are significantly higher. When new entrants offering low-priced products and services appear, companies have to choose a differentiation strategy. They have to move to new markets. Remarkably, this process never stops if companies want to remain competitive. Sony is the company using both strategies. The company has produced devices highly valued by music listeners. Sony Walkmans, for instance, were valued for their quality, although the prices were quite high. At the same time, the company provided affordable products as well (such as CDs). At present, the company is facing significant challenges as such innovators as Apple introduces new products highly valued by customers. Sony has to continue balancing between low cost and differentiation.

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Academic.Tips. (2021) 'Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively'. 10 June.

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Academic.Tips. (2021, June 10). Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively. Retrieved from https://academic.tips/question/michael-porter-outlined-generic-strategies-for-competitive-advantage-low-cost-and-differentiation-a-explain-define-low-cost-and-differentiation-b-provide-an-example-of-a-different-company-that-us/

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Academic.Tips. 2021. "Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively." June 10, 2021. https://academic.tips/question/michael-porter-outlined-generic-strategies-for-competitive-advantage-low-cost-and-differentiation-a-explain-define-low-cost-and-differentiation-b-provide-an-example-of-a-different-company-that-us/.

1. Academic.Tips. "Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively." June 10, 2021. https://academic.tips/question/michael-porter-outlined-generic-strategies-for-competitive-advantage-low-cost-and-differentiation-a-explain-define-low-cost-and-differentiation-b-provide-an-example-of-a-different-company-that-us/.


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Academic.Tips. "Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively." June 10, 2021. https://academic.tips/question/michael-porter-outlined-generic-strategies-for-competitive-advantage-low-cost-and-differentiation-a-explain-define-low-cost-and-differentiation-b-provide-an-example-of-a-different-company-that-us/.

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"Michael Porter outlined generic strategies for competitive advantage: low cost and differentiation. a. Explain/define low cost and differentiation. b. Provide an example of a different company that uses each and indicate if you feel they are using it effectively." Academic.Tips, 10 June 2021, academic.tips/question/michael-porter-outlined-generic-strategies-for-competitive-advantage-low-cost-and-differentiation-a-explain-define-low-cost-and-differentiation-b-provide-an-example-of-a-different-company-that-us/.

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