Firms can increase profits by either lowering the cost ofproduction or increasing the value of their product (and charging ahigher price). In order to do the latter, firms must differentiatetheir product in some way so that consumers value it more than theproducts made by competitors and are therefore willing to pay apremium price for it. (a) Name an international firm that followsthe differentiation strategy. (b) Name one that follows thecost-reduction strategy. (c) Which of these strategies will workbest for a firm that is selling furniture in the global market?Explain your answer.
Expert Answer
a) Apple – Apple is the market leader
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