According to Porter,organizations Cannot Simultaneously Pursue Both a Low-Cost Strategy

question 20

Essay

According to Porter,organizations cannot simultaneously pursue both a low-cost strategy and a differentiation strategy.Why? Explain how exceptions to this "rule" can be found,and give an example to illustrate the point.

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Definitions:

Limited Liability Corporation

A business structure where the owners have limited personal liability for the debts and actions of the corporation.

Corporation

A corporation is a legal entity that is separate from its owners, offering limited liability to its shareholders and having the ability to own property, sue, and be sued.

Professional Corporation

A business entity formed by lawyers, doctors, accountants, and other professionals, offering certain tax and legal advantages.

Sole Proprietorship

A type of business ownership where a single individual owns, manages, and is responsible for all aspects of the business.