Firms can increase profits by either lowering the cost of


Firms can increase profits by either lowering the cost of production or increasing the value of their product (and charging a higher price). In order to do the latter, firms must differentiate their product in some way so that consumers value it more than the products made by competitors and are therefore willing to pay a premium price for it. (a) Name an international firm that follows the differentiation strategy at the business-level. Explain how it does this. (b) Name one that follows the low-cost leadership strategy. Explain how it does this. (c) Which of these strategies will work best for a firm that is selling furniture in the global market? Explain your answer.

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Financial Management: Firms can increase profits by either lowering the cost of
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