Which of the Following Is True About Porter's Competitive Strategies

question 54

Multiple Choice

Which of the following is true about Porter's competitive strategies?

• A) Differentiation strategies address whether the market scope is broad or narrow.
• B) Differentiation can be broken down into low cost or broad scope categories.
• C) An airline using the differentiation strategy would be likely to offer travelers refreshments at a reasonable price, rather than serve bounteous meals.
• D) Apple, Inc. is a company that has benefited from a differentiation strategy and never tried to compete on price because it likes being perceived as an "elite" brand.

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Definitions:

Private-Owned Enterprises

Businesses that are fully owned by private individuals or corporations, as opposed to being owned by the government or public entities.

Communism

Communism is a political and economic ideology advocating for a classless society, where property and production means are owned and controlled by the community.

Fixed Incomes

Earnings from investments that provide a set return, such as bonds or dividends from stocks.

Inflation

Economic situation characterized by rising prices caused by a combination of excess consumer demand and increases in the costs of raw materials, component parts, human resources, and other factors of production.