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:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity.

Nations

Large groups of people united by common descent, history, culture, or language, inhabiting a particular country or territory.

Domestic Price

The price of goods or services within a country's borders, as opposed to international or foreign prices.