Cost leadership and Differentiation Strategies-Changes in Operating Income

Question 1 Cost leadership and Differentiation Strategies Choose an industry and provide the names of two companies, one that follows a cost leadership strategy and one that follows a product differentiation strategy. Explain your reasoning for your choices. Question 2 Changes in Operating Income There are three factors that cause changes in operating income. These are growth component, the price recovery component, and productivity component. Choose one part of one component and explain with an example the impact on operating income of this choice. The answers doesn’t have to be very long for each question, just a few paragraphs, no more than ½ page in length per question.

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