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Often times the perception, or brand of the company may become misconstrued in the marketplace. The cost leadership theory involves a direct focus on slimming down the firm's cost structure; usually at the expensive of product creativity. These companies primarily possess standardized products in perhaps a commoditized market structure. Parity and proximity must be achieved in terms of differentiation for these companies. Likewise, differentiation can be achieved through product lines, technology, or even distribution channels. Opposite cost leadership, parity and proximity are established from a cost perspective...
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