Combination strategy debate: According to Porter, low cost and differentiation are not compatible in the long run, as efforts to differentiate generally increase a business’ relative cost position. Others argue that the two may be compatible, although combining strategies is usually more difficult to accomplish.
“Multiple strategies” is not synonymous with the “combination strategy,” as the former involves the execution of two or more generic strategies, each tailored to the needs of a distinct market or class of customers. A common example in airlines offering both first-class and coach seating.
When employees are viewed as expenses, organizations tend to minimize their costs. When they are viewed as investments, organizations tend to maximize their value.
According to the knowledge management perspective, people and their skills and abilities represent the only resource that cannot readily be reproduced by a firm’s competitors if it is deemed to be a source of competitive advantage.