A Differentiation Strategy Is Best Defined as a Strategy

question 114

Multiple Choice

A differentiation strategy is best defined as a strategy

• A)employed by an organization that operates a single business and competes in a single industry.
• B)an organization uses to build competitive advantage by being unique in its industry or market segment along one or more dimensions.
• C)used to add new businesses that produce related products or are involved in related markets and activities.
• D)used to add new businesses that produce unrelated products or are involved in unrelated markets and activities.
• E)implemented by each functional area of the organization to support the organizations business strategy.

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Definitions:

Equilibrium

The market condition where supply equals demand for a product, resulting in a stable price.

Consumer Surplus

The difference between what consumers are willing to pay and what they actually pay.

Market Price

The current price at which a good or service can be bought or sold, determined by the forces of supply and demand.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.