Michael Porter Argues That Firms Can Create Competitive Advantages for Themselves

question 30

Multiple Choice

Michael Porter argues that firms can create competitive advantages for themselves by adopting one of the following strategies:
I.Cost leadership: firms strive to use the latest technology to lower the costs of production.
II.Differentiation: firms can differentiate their products by providing customers with unique delivery alternatives.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct, II is incorrect.
• D)I is incorrect, II is correct.

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Definitions:

Development

The process of economic, social, and cultural growth, expansion, or evolution, often associated with progressive changes.

Implementation

The act of putting a plan, decision, or agreement into effect.

Plan Success

Developing a strategic approach to achieve desired outcomes or targets.

Coordination

The act of organizing and making different elements work together effectively to achieve a goal.