Is Low‐Cost High Differentiation Better, Some Objective Evidence

Abstract

In recent years, the concept of generic strategies for achieving competitive advantage has gained prominence in the field of strategic management (BCG, 1976; Buzzell, Gale & Sultan, 1976; Porter, 1980; Hambrick, 1983; Karnani, 1984; Wright, 1987). Two generic strategies often mentioned in the literature are low‐ cost position and high differentiation position. Porter also mentions a third generic strategy called ‘focus’. However, this strategy is merely a specialised application of the two main generic strategies in a narrow market segment.

Citation

Chan, P.S. and Wright, P. (1990), "Is Low‐Cost High Differentiation Better, Some Objective Evidence", Management Research News, Vol. 13 No. 10, pp. 23-25. https://doi.org/10.1108/eb028110