Is there a difference between being both a cost leader and a differentiator, and being stuck in the middle? Explain your answer.
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There is a difference between being both a cost leader and a differentiator, and being stuck in the middle.
One who is both a cost leader and a differentiator, not only offers products/services at a highly competitive price, but also offers distinguished value to the customer and thus command a premium. This is a highly advantageous position and the firm benefits by topline and bottom-line growth. E-commerce for example, not only offers products at a cheaper rate (due to lesser intermediaries and lesser operating expenses as compared to brick and mortar shops), they also provide a differentiated service. They facilitate browsing, comparison and help in informed decision making at the convenience of sitting at home.
On the other hand, stuck in the middle neither has such a differentiated offering that customers will be impelled to buy it, nor do they offer a competitive enough price that may influence the customers enough to choose them over the competition. Blackberry, for example, was stuck in the middle. It was neither high end like HTC, nor a low end and cost-competitive player like Huawei.
Is there a difference between being both a cost leader and a differentiator, and being stuck...
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