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31.).
With Michael Porter’s warning it can be argued that a firm will have a hard time competing for market share if a customer is cost sensitive and a firm’s product is high in value then they may need to keep reducing cost to compete. This will mean that the SIM firm will be forced to lower there profit margin or cost price to compete with other competitors. Additionally if a firm has a product that has a perception of high value then the firm that is stuck in the middle will have a hard time making a profit if the keep reducing the price as they may have a hard time positioning there product effectively...
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