Porter Contends That ____ and ____ Are Two Important Competitive

question 29

Multiple Choice

Porter contends that ____ and ____ are two important competitive strategies.

• A) Low cost leadership, barrier to entry
• B) New entrant deterrent, differentiation
• C) Low cost leadership, differentiation
• D) Differentiation, monopolistic
• E) Monopolistic simulation, differentiation

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase its profits by increasing sales, given its fixed costs.

Scenario Analysis

A process of analyzing possible future events by considering alternative possible outcomes (scenarios), thus helping in the decision-making process.

Net Present Value

A calculation that compares the value of all cash inflows and outflows of a project or investment, discounted back to their present value.

Worst Case Scenario

The most adverse or negative outcome that can occur in a given situation.