What are the two main competitive levers

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What are the two main competitive levers? What are differential vs cost advantages? What is vertical vs. horizontal differentiation? We said in the first class quality or cost is neither necessary nor sufficient condition for competitive advantage – does this statement contradict with differential vs cost advantages? If not, how are they related (for instance, low cost may arise from economies of scale – in this case, is low cost or economies of scale the real factor why a firm outcompetes another? Why couldn’t the competitors also obtain that factor? If competitors couldn’t have that because they lack X, ask again why they couldn’t have X)? Other times, does low cost or high quality even matter? Think about the Air Canada vs. Porter Airlines case.

Reference no: EM132230724

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