What Are the Two Generic Competitive Strategies That Porter Promotes

question 80

Multiple Choice

What are the two generic competitive strategies that Porter promotes as the means for outperforming other corporations in a particular industry?

• A)competitive scope and differentiation
• B)diversification and concentration
• C)lower cost and competitive scope
• D)concentration and lower cost
• E)lower cost and differentiation

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Definitions:

Trade Discount

A reduction in price given by a seller to a buyer, usually based on the quantity purchased or agreed upon terms, not reflected in the invoice amount.

Net Price

The actual price paid for a product or service after deducting any discounts, rebates, or allowances.

Discount Method

A valuation approach that calculates the present value of future cash flows by applying a discount rate.

Discount Date

The date on which a payment must be made in order to receive a discount for early payment under specified terms.