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.

---

Definitions:

Dependent Variable

In research and experiments, the variable that is being tested and measured, expected to change as a result of manipulations to the independent variable.

Path-Goal Theory

A leadership theory that suggests leaders should adjust their style to fit the employee's and task's needs to achieve a goal.

Task Characteristics

The attributes or features inherent in work-related activities that affect how they are perceived and performed.

Subordinate Effort

The exertion of energy or application of skills by individuals or teams at lower hierarchical levels within an organization, usually directed towards achieving the organization's objectives.