Session 14: Equity Analysis and Valuation
Reading 59: Introduction to Industry and Company Analysis
LOS k: Describe the elements that should be covered in a thorough company analysis.
An aggressive price reduction to gain market share is most likely to be associated with a:
|
A) |
product differentiation strategy. | |
|
B) |
cost leadership strategy. | |
|
C) |
service differentiation strategy. | |
Michael Porter identified two competitive strategies: cost leadership and product or service differentiation. A firm that uses a cost leadership or low-cost strategy seeks to have low production costs that will enable it to offer lower prices than its competitors to protect or gain market share. A product or service differentiation strategy seeks to gain a price premium for its products by making them distinctive to the consumer. | 
发表于 2011-3-30 11:29
|