Which of the Following Best Explains Porter's Differentiation Strategy

question 7

Multiple Choice

Which of the following best explains Porter's differentiation strategy?

• 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 travellers refreshments at a reasonable price rather than serve free meals.
• D) The statement by Starbucks's international president that "We're not in the business of filling bellies, we're in the business of filling souls" is indicative of a differentiation strategy.

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Definitions:

Higher-Quality Materials

Substances or components that are superior in terms of durability, texture, and overall performance in the manufacturing of products.

Trading Up

A business strategy that involves convincing customers to purchase more expensive items, upgrades, or add-ons in an effort to increase profitability.

Package Content

The items or materials contained inside a package.

Downsizing

The process of reducing a company's workforce and/or scaling back its operations to lower expenses and streamline its organization.