In What Situation Can a Company Have Both Differentiation and a Low-Cost

Multiple Choice

In what situation can a company have both differentiation and a low-cost position?

A) With innovation, a company can push out the efficiency frontier in its industry and can deliver more differentiation at a lower cost than its rivals.
B) The company chooses to focus on the commodity market.
C) The company focuses on improving the reliability of its product.
D) The company improves its customer service on point-of sale and after-sale customer interactions.
E) It is impossible to achieve both differentiation and a low-cost position.