Which of the Following Statements About Quality as a Competitive

question 29

Multiple Choice

Which of the following statements about quality as a competitive advantage is true?

• A)To be successful, a competitive advantage does not have to be unique.
• B)An innovation can be a source of a competitive advantage.
• C)The only way to create a competitive advantage is by improving quality.
• D)A company must ignore costs when establishing a competitive advantage.

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Definitions:

Oligopolistic Competition

A market structure in which a few firms dominate, each with a significant share of the market, leading to limited competition and high barriers to entry.

Price Wars

A competitive strategy where companies reduce prices of goods or services in succession to undercut competitors, with potential negative effects on industry profits.

Penetration Pricing Strategy

A pricing tactic in which a product is offered at a low price during its initial offering to attract customers and gain market share.

Market Penetration

The strategy of selling more of a product or service to the existing customers or within the current market space to increase its market share.