According to Porter, to Achieve a Cost Advantage by Following

question 45

Multiple Choice

According to Porter, to achieve a cost advantage by following the functional strategy of technological followership, a business unit should

• A) pioneer the lowest-cost product design.
• B) innovate in other activities to increase buyer value.
• C) avoid R&D costs through imitation.
• D) create low-cost ways of performing value activities.
• E) be the first firm down the learning curve.

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Definitions:

Lorenz Curve

A graphical representation showing the distribution of income or wealth within a society, indicating the degree of inequality.

Income Quintile

An income quintile is a statistical measure dividing the population into five equal groups based on their income levels to analyze economic inequality or wealth distribution.

Non-Cash Assistance

Support provided to individuals or families that does not involve direct financial payments, such as food stamps, housing vouchers, or healthcare services.

Poverty Income Threshold

A specified income level, set by government standards, below which an individual or family is considered to be living in poverty.