Capstone Discussion 3

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Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A best cost strategy can be an effective level strategy to the extent that a firm whose fixed costs and overhead are very low relative to the competition. 

  • What is an example of an industry where you think a best-cost strategy could be successful?

  • How would you differentiate a company to achieve this success in this industry? 

  • Provide an example of a firm in Jacksonville that is following a best cost strategy? Explain. (Costco) 
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