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1. Which of the following is NOT TRUE regarding cost leadership strategy?
Targets average customers for mass market – little differentiation.
Key functional areas are manufacturing and materials management.
Relentless drive to cut costs might compromise value that customers desire.
Firms should deliver products that customers perceive to be valuable and different
This strategy tends to offer better value to customers.
2. The three generic strategies (i.e. cost leadership, differentiation, & focus strategies) can strengthen a focal firm’s position relative to the five forces.
True
False
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