Question
Question 1 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 competitiv strategy? A. Yes B. No B A
Answer
4.3
(229 Votes)
Graham
Master · Tutor for 5 years
Answer
A
Explanation
This question refers to Porter's two competitive strategies of cost-leadership and differentiation. Cost leadership is about being the lowest cost producer in the industry, while differentiation is about building an image that your product is distinct and more geared towards a targeted customer base. Overlap between these strategies would mean Apple being able to create a product that is both uniquely valuable and produced at a lower cost than competitors.The question is hypothetical and subjective. It seems to evaluate the understanding of Porter's competitive strategies and Apple’s strategy challenges in relation to Samsung.At face value there's no "right" answer. Responding “yes” means they believe Apple could theoretically pursue both a cost-leadership and a differentiation strategy simultaneously stretching beyond its core competence. Responding “No” indicates one’s belief that companies like Apple cannot sustainably do both, due to the contrasting demands and resources required for each strategy. Or the belief that Porter’s guideline and the situation demand them to primarily have a clear product positioning decision – cost-leader or differentiator.