Low Prices, Differentiation and High Value: A Business Strategy Paper on the Subject of Prices and Competition

A Business Strategy Paper on the Subject of Prices and Competition • Current business strategy presents a false choice: Low Price or Differentiation • Market leadership is determined by low prices and “High Value” • Sellers routinely overestimate ability to provide unique differentiation • Eventual failure of differentiation leads to competitive substitutions • Consumers benefit from low prices – Low prices create a large social gain