Under Which Condition Would a Differentiation Strategy Be Especially Effective

question 29

Multiple Choice

Under which condition would a differentiation strategy be especially effective?

• A)When the industry has many different niches and segments,thereby allowing a company to pick a competitively attractive niche suited to its own resources.
• B)When industry leaders do not consider the niche to be crucial to their own success.
• C)When the target market niche is large,profitable and growing.
• D)When technological change is fast paced and competition revolves around rapidly evolving product features.
• E)When few,if any,other rivals are attempting to specialize in the same target segment.

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Definitions:

Lower Of Cost Or Market

An accounting principle requiring companies to value inventory at the lower of its historical cost or current market price.

Inventory Valuation

The cost associated with an entity's inventory at the end of a reporting period, calculated using methods like FIFO, LIFO, or Weighted Average.

Inventory Control

The supervision of non-capitalized assets (inventory) and stock items, particularly managing the quantity of stock on hand to prevent stockouts or excessive oversupply.

Petty Cash Voucher

A document used to record and authorize the payment of small, immediate expenses from a petty cash fund.