Low cost;
Offers a way of attracting customers. Used by businesses that are late entrants to the markets and do not have an established name. Requires them to have a low cost base and be able to maintain or reduce cost levels when established competitors respond.
Differentiation;
Making a product separate and distinct from rivals, giving consumers a reason to buy their product. Allows the business to charge higher prices as demand is likely to become more price inelastic.
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