Asymptotic effect in cost domination: the way to Differentiation

Abstract

This research concerns cost strategic issues in highly competitive and collusive international medium to large environments in order to prevent price wars, as well as develop management behaviour able to lead to unquestionable and sustainable competitive advantage. Thus, it tries to be ethical from a human development viewpoint. This contribution shows that the three Porter's options, ‘Differentiation’, ‘Cost Domination’ and ‘Concentration’, can be reduced to the one and only ‘Differentiation’ strategy in order (1) to develop international sustainable competitive advantages of any nature except cost, (2) avoid price wars, and (3) support Human Development.

Keywords::

• differentiation
• cost domination
• concentration
• price wars
• asymptotic effect

Notes

^1. As of Texas Instruments' definition.

^2. Make the sky become the most beautiful place on earth.

^3. In opposition to support activities.