True or False: Victoria's Secret, with its low-priced holiday discounts, exemplifies a firm pursuing cost-leadership; while Wal-Mart, with its vast mix of products, exemplifies a firm pursuing a differentiation strategy. True False

The statement is: False.

Explanation:

Cost leadership refers to the efforts companies make to create a comparative advantage, meaning to differentiate from competitors bu using opportunity costs that allow the production costs to be lower. Producers' discounts are not a comparative advantage unless the production of the goods offered were lower than competitors. Thus, Victoria's Secret campaign for low-priced holiday discounts is not an example of cost leadership.

The differentiation strategy is related to the differential advantage companies develop the whole offering a product that has a unique feature making it outstanding from its competitors. Most firms implementing this approach focus on the production of one product only to offer customers a specialized good. So, if Wal-Mart provides a mix of products, the store is not implementing a differentiation strategy.