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An issue of critical importance is that of competitive differentiation, and the result that it achieves in a company's offering as providing distinctive value in the customer's judgement - and indeed value better and preferable to any alternatives. The author tells that there are two sources of competitive advantage: low cost and differentiation. He also tells that a company can compete on a narrow or broad scope but either as a low price leader or as a differentiator. He reminds that a company can only outperform competitors if it can sustain greater value to customers or create comparable value at lower cost over the longer term.
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