The influence of cost management and differentiation on long term performance

This study has been provide information regarding the impact of the selective strategy applied Companies (cost management strategy and product differentiation strategy) on their financial performance. Cost management strategy says that managers must do some works to buying, producing, sales and caring in the better forms of competitors. In different ways companies that use differentiation strategy can use it with best and different products. By using this strategy companies can increase price of products. The goal of this research is knowing the influence of cost management and differentiation strategies on Stock Exchange of Iran in different industries. We use the information of 45 companies accepted in Stock Exchange of Tehran from 1379 to 1389. The results show that both strategies have efficiency in stock return. Also we understand that differentiation strategy have the better effect on firms performance because in short time can not uses with another companies.