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What are the essential aspects of the Product Differentiation Strategy, the Cost-Based Strategy and the Information...

  1. What are the essential aspects of the Product Differentiation Strategy, the Cost-Based Strategy and the Information Technology Strategy as examples of competitive strategies that utilize sustainable competitive advantages based on core competencies?
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Information Technology strategy also referred to as technological strategic plan is a comprehensive strategic plan that deals with integrating technology to achieve the goals of business. IT strategy include management of hardware and software, human capital, use and application of funds etc.

Product differentiation strategies: At any given time, market is flooded witn with many alternatives at the disposal ofa customer. Customers choose only those products that are perceived to be different and satisfy the need associated with the use of product. Therefore companies adopt a strategy called as product differentiation strategy where in they incorporate features that are different from rest of the products. The positioning of the product is also based on differentiation.

In the cost based strategy companies lower the price of the products and offer them at the price that is comparatively lower than their competitors. Cost based strategy does not mean offering the product at lowest price but offering at best price possible.

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