Question

A company that finds itself “stuck in the middle” between a low cost strategy and a differentiation strategy can utilize value innovation to push toward or past the efficiency frontier. consider the example of eddie bauer in the text. how might the company introduce a value innovation to move closer to the efficiency frontier?

Answer 1

The company could find products that are both cost-effective yet different enough from those of their competitors as a way of standing out in the retail goods field. With Eddie Bauer's reputation for making products, they could find a tweak in some of their existing line that would further set themselves apart and give the customer a perceived value that may not exist in a competitor's similar offering.

Answer 2

Answer:

It must find a way to reduce its costs without sacrificing style and other elements of its differentiation

Explanation:

The company needs to move along the low-cost axis to a place where it can be profitable, while still appealing to the same customer set with its current level of differentiation.