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- Title
Costs, Revenue, and Business-Level Strategy.
- Authors
Jones, Gareth B.; Butler, John E.
- Abstract
There is an ongoing debate as to whether the strategies of differentiation and cost leadership are mutually exclusive or whether they can be achieved simultaneously. Using transaction cost theory, a model of business-level strategy is developed that reconciles these divergent perspectives. It is argued that when transaction costs, production costs, and revenue are considered within the calculus of a single model, the trade-oils a firm faces when choosing a business strategy become clearer.
- Subjects
INDUSTRIAL costs; PROFITABILITY; TRANSACTION costs; STRATEGIC planning &; economics; COST centers (Accounting); REVENUE management; EXTERNALITIES; COMPETITIVE advantage in business; PRODUCT differentiation; DIVERSIFICATION in industry; ECONOMICS; MANAGEMENT
- Publication
Academy of Management Review, 1988, Vol 13, Issue 2, p202
- ISSN
0363-7425
- Publication type
Article
- DOI
10.5465/AMR.1988.4306865