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In the world of business development, can a firm meet cost leadership strategy and a differentiation strategy (both of them)?

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Question ajoutée par Raafat Sallam , Organizational Development and Training Consultant , Training Centers, Marketing Organizations.
Date de publication: 2014/06/02
Mohammad Tohamy Hussein Hussein
par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Yes. An organization can target being lowest cost producer of the differentiated product/service.

hossam azzam
par hossam azzam , Fast food restaurant,s manager. , alexandria-egypt

YES

SURE &

A GREE WITH Mr. Mohammed tohamy

Utilisateur supprimé
par Utilisateur supprimé

In my opinion it is not a question IF these two targets can be met. In fact you will not have much other choice than to do this.

If you aim for cost leadership than you cannot target the quality leadership at the same time (for known reasons). Therefore your quality is in an ocean with many other low cost products and very often these products are simply exchangable. In order to stick out of this ocean you have to offer something to the customer and the strategy you might want to choose is the (product) differentiation. 

The differentiation in additional customer service is something different and is mostly used with high quality objects in a top pricing range.

This is but a very short summary and would best be discussed in more detail.

Best regards,

Wolfgang Altenstrasser

Utilisateur supprimé
par Utilisateur supprimé

yes sure

zafar abbas minhas
par zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

agreed with hussain bro,,,

Farid Zabihian
par Farid Zabihian , Business Manager , Navia

Yes.but the point is that you should shift your focus to non customers.beacuse if you focus on the same market by increasing the value of your product you will also raise your cost structure that means higher price and offering a bit more for a bit less will give you competitive advantage but it will make huge profit.but if you focus on non custoemrs you can raise some elements of your products quality (differentiation) and eliminating some aspects that they don't value(reducing costs) then by applying that you create new demand. For example i as a non customer of airline industry want the speed of plane to travel but food.and hub cooncectivity and other extra services are not important for me(i will not pay for that).so it means a company can build planes that can transfer huge amount of passengers with higher speed than taxi and eliminating extra services to reduce it cost.

ALI ABDULLAH HASAN AL-KHAFAJI
par ALI ABDULLAH HASAN AL-KHAFAJI , Warehouse & Logistics Manager , Earth link Telecom

I dont think so, For example, a cost leader would focus research and development on process technologies in order to improve efficiency, but a differentiator would focus research and development on product technologies in order to add uniqueness.

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