According to Porter, Which Strategy Offers Products or Services to a Niche

question 115

Multiple Choice

According to Porter, which strategy offers products or services to a niche group of customers at the lowest price available on the market?

• A) Cost Leadership - Low Cost
• B) Cost Leadership - Best Value
• C) Focus - Low Cost
• D) Focus - Best Value
• E) Differentiation

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Definitions:

Cash Reserves

Funds that a company or individual keeps on hand to meet short-term and emergency funding needs.

Inventory Turnover

A calculation representing the turnover rate of a company's stock, showing how often it's sold and replaced within a given period.

Current Ratio

A liquidity measure that evaluates a company's ability to pay short-term obligations or those due within one year, calculated by dividing current assets by current liabilities.

Fixed Asset Turnover

A financial ratio that measures a company’s ability to generate sales from its fixed-asset investments - such as property, plant, and equipment.