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Propulsion: Exploring the "next practices" of successful marketing communication firms

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Two very different new business strategies

November 17, 2008 | Author: Tim Williams

Most students of serious business schools learn that there are two – and only two – real strategies in business: low cost and differentiation. Some brands, like Wal-Mart, pursue the low cost strategy with great success. In fact, Wal-Mart makes a series of very conscious trade-offs (sales help, ambience, urban convenience) in order to be able to deliver on its low cost strategy.

Apple's strategy, on the other hand, is differentiation. The iPhone and most other Apple products are clearly different and generally higher priced.

A brief strategy quiz

What would you say is the strategy of most agencies; low cost or differentiation? Where would you plot your agency on the...

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