Empirical Evidence Shows That Firms That Pursue Cost Leadership or Differentiation

question 52

Essay

Empirical evidence shows that firms that pursue cost leadership or differentiation achieve returns that are about equivalent,firms that pursue both cost leadership and differentiation have the highest returns,and firms that are stuck in the middle have the lowest returns.Using concepts from this chapter,explain why this is so.

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Definitions:

Direct Experience

A firsthand involvement or encounter with events or conditions, allowing for the acquisition of knowledge or skills through personal participation.

Organizational Citizenship Behaviors

Represent the voluntary actions of employees that contribute to the organizational well-being beyond the scope of their formal duties.

Affect

A term referring to the underlying experience of feeling, emotion, or mood.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.