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Differentiation versus Low Cost or Differentiation and Low Cost: A Contingency Framework

Charles W. L. Hill
The Academy of Management Review
Vol. 13, No. 3 (Jul., 1988), pp. 401-412
Published by: Academy of Management
Stable URL: http://www.jstor.org/stable/258088
Page Count: 12
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Differentiation versus Low Cost or Differentiation and Low Cost: A Contingency Framework
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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.

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