prashantsahni

An aggressive price reduction to gain market share is most likely to be associated with a:

A) cost leadership strategy.

B) product differentiation strategy.

C) service differentiation strategy.

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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.