Final answer:
The statement is true; companies generally follow either a cost leadership strategy or a product differentiation strategy. Cost leadership focuses on becoming the lowest-cost producer, while product differentiation emphasizes unique products and services. Companies with strong core competencies often succeed by specializing in a limited product range.
Step-by-step explanation:
The statement that the two broad strategies that companies follow are cost leadership strategy and product differentiation strategy is true. The cost leadership strategy is where a company aims to become the lowest-cost producer in the industry and is often pursued by producing on a large scale which allows the company to benefit from economies of scale. Conversely, the product differentiation strategy involves a company developing unique products and services that offer additional value to the customer, which can command a premium price.
A core competency is often associated with companies that use product differentiation strategies. Such companies focus on one or a few products, becoming highly specialized and recognized in their market segment. This focus can often result in a competitive advantage over firms that spread their efforts across a wider range of products.