Final answer:
Low cost and/or differentiation can protect a company from competitive forces by attracting price-sensitive customers and creating customer loyalty through unique features or capabilities.
Step-by-step explanation:
In a company's industry, low cost and/or differentiation can offer protection against competitive forces. Low cost can provide a competitive advantage by allowing the company to offer products at a lower price than competitors, attracting price-sensitive customers. Differentiation, on the other hand, can protect the company by creating a unique value proposition that sets it apart from competitors.
For example, if a company can offer a product with unique features or capabilities that are difficult for competitors to replicate, it can create customer loyalty and make it harder for competitors to attract those customers.
Additionally, differentiation can also lead to higher profit margins, which can act as a buffer against competitive pressures.