Question
Samsung is offering customers something better and more unique . The management team at Apple is troubled by the fact that Samsung is leapfrogging ahead of Apple. Can Apple create some overlap between Porter's (1985) cost -leadership and differentiation competitive strategy? A. Yes B. No
Answer
3.8
(246 Votes)
Faye
Master · Tutor for 5 years
Answer
A
Explanation
This question appears to be based on understanding competitive strategy in business and its practical application to real-world scenarios, more specifically to Apple keeping up with Samsung's competitive progress. Cost-leadership strategy involves becoming the lowest cost producer in the industry, differentiation strategy refers to doing something differently to create a noticeable impact in the industry or the market. To create some overlap between cost-leadership and differentiation strategy means that Apple needs to aim to provide superior and unique services or products while keeping down costs at the same time. This is not entirely an impossible feat, however difficult or challenging it might be, depending on the specifics of the situation. Hence, ours is a judgment-based question, answering which requires a basic understanding of the Michael Porter's concept of competitive strategies.