What are the main differences between a low cost strategy and a differentiation strategy?
|
Read Online (Free) relies on page scans, which are not currently available to screen readers. To access this article, please contact JSTOR User Support . We'll provide a PDF copy for your screen reader. With a personal account, you can read up to 100 articles each month for free. Show
Recent Posts
journal article Differentiation versus Low Cost or Differentiation and Low Cost: A Contingency FrameworkThe Academy of Management Review Vol. 13, No. 3 (Jul., 1988) , pp. 401-412 (12 pages) Published By: Academy of Management https://doi.org/10.2307/258088 https://www.jstor.org/stable/258088 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $29.00 - Download now and later Abstract In the policy literature there is an assumption that the generic business-level strategies of differentiation and overall cost leadership are generally inconsistent. Contrary to this view, this article presents a contingency framework in which differentiation can be a means for firms to establish an overall low-cost position and discusses that a combination of differentiation and low cost may be necessary for firms to establish a sustainable competitive advantage. Journal Information The Academy of Management Review, now in its 26th year, is the most cited of management references. AMR ranks as one of the most influential business journals, publishing academically rigorous, conceptual papers that advance the science and practice of management. AMR is a theory development journal for management and organization scholars around the world. AMR publishes novel, insightful and carefully crafted conceptual articles that challenge conventional wisdom concerning all aspects of organizations and their role in society. The journal is open to a variety of perspectives, including those that seek to improve the effectiveness of, as well as those critical of, management and organizations. Each manuscript published in AMR must provide new theoretical insights that can advance our understanding of management and organizations. Most articles include a review of relevant literature as well. AMR is published four times a year with a circulation of 15,000. Publisher Information The Academy of Management (the Academy; AOM) is a leading professional association for scholars dedicated to creating and disseminating knowledge about management and organizations. The Academy's central mission is to enhance the profession of management by advancing the scholarship of management and enriching the professional development of its members. The Academy is also committed to shaping the future of management research and education. Founded in 1936, the Academy of Management is the oldest and largest scholarly management association in the world. Today, the Academy is the professional home for more than 18290 members from 103 nations. Membership in the Academy is open to all individuals who find value in belonging. Rights & Usage This item is part of a JSTOR Collection. Topic: Similarities and Differences between Differentiation and Lower Cost approaches? (Read 2294 times) </span><span style="vertical-align:0px"><a name="fb_share" share_url="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&topic=186808">Share</a><script src="https://static.ak.fbcdn.net/connect.php/js/FB.Share" type="text/javascript"> </span> </h3> </div> <p id="whoisviewing" class="smalltext">0 Members and 1 Guest are viewing this topic. </p> <form action="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&action=quickmod2;topic=186808.0" method="post" accept-charset="ISO-8859-1" name="quickModForm" id="quickModForm" style="margin:0" onsubmit="return oQuickModify.bInEditMode ? oQuickModify.modifySave('07f09e4f84d84427d68ca00b9ab0f476', 'fb0fc697c1dd') : false"> <div> <span class="topslice3"><span></span></span> <div class="post_wrapper"> <div class="poster"> <h4> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&action=profile;u=209445" title="View the profile of Travishobo">Travishobo</a> </h4> <ul class="reset smalltext" id="msg_1126395_extra_info"> <li class="postgroup">Adventurer</li> <li class="stars"><img src="https://archive.atarnotes.com/forum/Themes/default/images/star.gif" alt="*"></li> <li class="postcount">Posts: 16</li> <li class="gpbp_respect"><b>Respect: <span class="gpbp_respect_count_209445">0</span></b></li> <li class="profile"> <ul> </ul> </li> </ul> </div> <div class="postarea"> <div class="flow_hidden"> <div class="keyinfo"> <div class="messageicon"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/post/xx.gif" alt=""> </div> <h5 id="subject_1126395"> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&topic=186808.msg1126395#msg1126395" rel="nofollow">Similarities and Differences between Differentiation and Lower Cost approaches?</a> </h5> <div class="smalltext">« <strong> on:</strong> August 01, 2019, 06:23:40 pm »</div> <div id="msg_1126395_quick_mod"></div> </div> <div class="gpbp_vote"> <span id="gpbp_score_1126395" class="help" title="The current score of this post.">0</span> </div> </div> <div class="post"> <div class="inner" id="msg_1126395">Does anyone know any similarities and differences between differentiation and lower cost?<br>Thanks <img src="https://www.atarnotes.com/forum/Smileys/default/smiley.gif" alt=":)" title="Smiley" class="smiley"></div> </div> </div> <div class="moderatorbar"> <div class="smalltext modified" id="modified_1126395"> </div> <div class="smalltext reportlinks"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/ip.gif" alt=""> Logged </div> </div> </div> <span class="botslice 3"><span></span></span> </div> <hr class="post_separator"> <a id="msg1126698"></a> <div> <span class="topslice3"><span></span></span> <div class="post_wrapper"> <div class="poster"> <h4> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&action=profile;u=187421" title="View the profile of magdichi">magdichi</a> </h4> <ul class="reset smalltext" id="msg_1126698_extra_info"> <li class="postgroup">Fresh Poster</li> <li class="stars"><img src="https://archive.atarnotes.com/forum/Themes/default/images/star.gif" alt="*"></li> <li class="postcount">Posts: 3</li> <li class="gpbp_respect"><b>Respect: <span class="gpbp_respect_count_187421">0</span></b></li> <li class="profile"> <ul> </ul> </li> </ul> </div> <div class="postarea"> <div class="flow_hidden"> <div class="keyinfo"> <div class="messageicon"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/post/xx.gif" alt=""> </div> <h5 id="subject_1126698"> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&topic=186808.msg1126698#msg1126698" rel="nofollow">Re: Similarities and Differences between Differentiation and Lower Cost approaches?</a> </h5> <div class="smalltext">« <strong>Reply #1 on:</strong> August 03, 2019, 09:24:49 pm »</div> <div id="msg_1126698_quick_mod"></div> </div> <div class="gpbp_vote"> <span id="gpbp_score_1126698" class="help" title="The current score of this post.">+2</span> </div> </div> <div class="post"> <div class="inner" id="msg_1126698">Differences:<br>- The key difference between the two strategies is their focus. The cost leadership approach has an internal focus, with the business looking at generating economies of scales and efficiencies within the business to reduce costs. This compares with differentiation where there is an external focus. It depends on the business creating a unique product or service that meets a customer need and it actively markets and promotes this differentiation.<br>- Lower cost approach will tend to offer lower prices, benefiting from "price-sensitive consumers", whereas differentiation tends to offer higher-priced products and attract customers who are quality conscious and not as sensitive to price.<br><br>Similarities:<br>- Both easier for large businesses to spend money on research and development to innovate or use economies of scale to reduce costs.<br><br>The similarity is a bit iffy... i think the two differences are pretty clear though. Hope this helped!</div> </div> </div> <div class="moderatorbar"> <div class="smalltext modified" id="modified_1126698"> </div> <div class="smalltext reportlinks"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/ip.gif" alt=""> Logged </div> <div class="signature" id="msg_1126698_signature">2019 - Business Management (44), Psychology (42)<br><br>2020 - Methods, Further, English, Legal Studies</div> </div> </div> <span class="botslice 3"><span></span></span> </div> <hr class="post_separator"> <a id="msg1127813"></a> <div> <span class="topslice3"><span></span></span> <div class="post_wrapper"> <div class="poster"> <h4> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&action=profile;u=298368" title="View the profile of Boink">Boink</a> </h4> <ul class="reset smalltext" id="msg_1127813_extra_info"> <li class="postgroup">Adventurer</li> <li class="stars"><img src="https://archive.atarnotes.com/forum/Themes/default/images/star.gif" alt="*"></li> <li class="avatar"> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&action=profile;u=298368"> <img class="avatar" src="https://www.atarnotes.com/forum/avs/avatar_298368_1565339216.png" alt=""> </a> </li> <li class="postcount">Posts: 13</li> <li class="blurb">Internally Screaming</li> <li class="gpbp_respect"><b>Respect: <span class="gpbp_respect_count_298368">+1</span></b></li> <li class="profile"> <ul> </ul> </li> </ul> </div> <div class="postarea"> <div class="flow_hidden"> <div class="keyinfo"> <div class="messageicon"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/post/xx.gif" alt=""> </div> <h5 id="subject_1127813"> <a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&topic=186808.msg1127813#msg1127813" rel="nofollow">Re: Similarities and Differences between Differentiation and Lower Cost approaches?</a> </h5> <div class="smalltext">« <strong>Reply #2 on:</strong> August 09, 2019, 06:23:36 pm »</div> <div id="msg_1127813_quick_mod"></div> </div> <div class="gpbp_vote"> <span id="gpbp_score_1127813" class="help" title="The current score of this post.">0</span> </div> </div> <div class="post"> <div class="inner" id="msg_1127813"><div class="quoteheader"><div class="topslice_quote"><a target="_blank" href="https://archive.atarnotes.com/forum/index.php?PHPSESSID=s6r2b54udng9dk0flbcd8f71b7&topic=186808.msg1126698#msg1126698">Quote from: magdichi on August 03, 2019, 09:24:49 pm</a></div></div><blockquote class="bbc_standard_quote">Differences:<br>- The key difference between the two strategies is their focus. The cost leadership approach has an internal focus, with the business looking at generating economies of scales and efficiencies within the business to reduce costs. This compares with differentiation where there is an external focus. It depends on the business creating a unique product or service that meets a customer need and it actively markets and promotes this differentiation.<br>- Lower cost approach will tend to offer lower prices, benefiting from "price-sensitive consumers", whereas differentiation tends to offer higher-priced products and attract customers who are quality conscious and not as sensitive to price.<br><br>Similarities:<br>- Both easier for large businesses to spend money on research and development to innovate or use economies of scale to reduce costs.<br><br>The similarity is a bit iffy... i think the two differences are pretty clear though. Hope this helped!<br></blockquote><div class="quotefooter"><div class="botslice_quote"></div></div><br>I'd also like to add another similarity, which is that they both go through the same process when identifying which strategy to use (the steps when identifying which strategy a business should use out of the generic strategies).<br>Sorry, I couldn't help myself, I always find it safe to have 2 of each similarity and difference lol</div> </div> </div> <div class="moderatorbar"> <div class="smalltext modified" id="modified_1127813"> </div> <div class="smalltext reportlinks"> <img src="https://archive.atarnotes.com/forum/Themes/default/images/ip.gif" alt=""> Logged </div> <div class="signature" id="msg_1127813_signature"><strong>2020 Gang</strong><br>2019 - Business Management<br>2020 - English, Data Analytics, Further Math, Legal Studies, VisCom<br>KLD Class of 2020</div> </div> </div> <span class="botslice 3"><span></span></span> </div> <hr class="post_separator"> </form> </div> </div> <a id="lastPost"></a><style> .jsd_calculator_forums { padding:0px!important; display: inline-block; } #forumWrap { padding:0px; padding-right:10px; } #forumSidebar { margin-top:5px; min-height:300px; padding:15px; padding-top:0px; -webkit-transition: none!important; -moz-transition: none!important; -o-transition: none!important; transition: none!important; } #forumSidebar h3{ background-color: #0095c0; color: #fff; font-size: 18px; font-weight: normal; padding: 10px 15px; text-transform: uppercase; margin: 10px 0 0; font-family: "Open Sans"; font-weight: bold; } #forumSidebar dt{ background:#fff; border-bottom:1px solid #DDDDDD; margin-bottom:1px; padding:5px; font-size:12px } #forumSidebar img{ margin-top:10px; } #forumSidebar dd{ display:none; } .pagesection { width:100%; } </style> <div id="forumSidebar" class="col-sm-3 hidden-xs hidden-sm" style="margin-top:0px"> <div id="div-gpt-ad-1472536026694-0" style="height:250px;width:300px"> <script> googletag.cmd.push(function() { googletag.display('div-gpt-ad-1472536026694-0'); });Recent Posts
Bài Viết Liên Quan
Bản quyền © 2021 MarketingBlog Inc.
|
