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Concept Version 14
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The Challenge of Competition

Cost vs. quality

Cost vs. quality

Companies generally achieve either a cost or a quality advantage (very rarely, both). In panel A, both companies' products have the same cost, but Company I's product has higher value. In panel B, both companies' products have the same value, but Company I's product has lower cost. In panel C, Company I's product has both higher value and lower cost (this is the rarest situation).

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    http://upload.wikimedia.org/wikipedia/commons/3/3f/TypesofAdvantage.png CC BY-SA.

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