1. The relation is the firms first identifies the customer’s needs and maybe fully satisfy them. The firm will come up with strategies to enhance a good and long relationship with its customers by giving them a quality service or a product.
The relation is important to the firm because this enables them to fully satisfy the wants of their customers depending on their past trading relationship whom they want to retain. Now the company will create better strategies to effectively enhance a long and healthy relationship with their customers.
2. In the cost leadership, the firm will somehow have to lower their prices at a price that will not affect them negatively. This is because in the competitive rivalry there is intense competition by different and able competitors.
In differentiation, it also contains price sensitivity that a company will acknowledge by accepting the bargaining power of their customers. The company will focu...