Which strategy helps a business achieve a competitive edge?

Choosing to be the lowest-cost supplier or to innovate products and services is a solid strategy for a business to achieve a competitive edge. This approach allows a company to attract price-sensitive customers while still appealing to those seeking unique and cutting-edge offerings.

Being the lowest-cost supplier means offering products or services at a price point that undercuts competitors, thereby capturing a larger market share. This often leads to increased sales volume and better economies of scale. On the other hand, innovating products or services differentiates a business in the marketplace, creating a unique value proposition that can justify higher prices or foster customer loyalty.

This dual strategy addresses a broad range of customer needs and preferences. It not only positions the business advantageously against competitors but also enhances its ability to adapt to market changes and consumer demands. Such versatility is crucial for long-term success in a dynamic business environment.