excercise 3

Overview

1. What are the main differences between a low-cost strategy and a differentiation strategy?
2. Why is market segmentation such an important step in the process of formulating a business-level strategy?
3. How can a business-level strategy of (a) low cost and (b) differentiation offer some protection against competitive forces in a company’s industry?
4. What is required to transform a business-level strategy from a concept to a reality?
5. What is meant by the term value innovation? Can you identify a company not discussed in the text that has established a strong competitive position through value innovation?