Abstract This paper considers that there is misleading on M. Porter's "Trade off between cost leadership and differentiation strategy"; proposes 3-stage of industry evolving, competition evolving curves of industrial mode in 2-D strategic space and concept of "Trade off point"; considers that "Trade off" is a strategic action which has been to adopt within special period lacking in magnitude innovation, most important approach to avoid or break "Trade off" is initiate a magnitude innovation.
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Received: 05 July 2007
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