In What Situation Can a Company Have Both Differentiation and a Low-Cost

question 30

Multiple Choice

In what situation can a company have both differentiation and a low-cost position?

• A) With innovation, a company can push out the efficiency frontier in its industry and can deliver more differentiation at a lower cost than its rivals.
• B) The company chooses to focus on the commodity market.
• C) The company focuses on improving the reliability of its product.
• D) The company improves its customer service on point-of sale and after-sale customer interactions.
• E) It is impossible to achieve both differentiation and a low-cost position.

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Definitions:

Leadership Behavior

Actions, practices, and attitudes exhibited by leaders to influence others toward achieving organizational goals.

Performance

A measure of how well an individual, group, system, or component accomplishes a set of tasks or objectives.

Behavioral Leadership Theories

Theories that focus on analyzing and understanding leadership based on the behaviors and actions of leaders rather than on their traits or characteristics.

Situational Factors

External influences that affect an individual's behavior or decisions in any given scenario, independent of their personal characteristics.