Which of the Following Statements About Companies That Adopt a Differentiation

question 90

Multiple Choice

Which of the following statements about companies that adopt a differentiation strategy is True?

• A) They believe that people will pay more for a product that is unique in some way.
• B) Their focus is on being as efficient as they can be.
• C) They rely on selling products at the lowest possible cost.
• D) They are more likely to take a mechanistic approach to organizational design.
• E) They concentrate on developing large quantities of the same product, thereby providing cost advantages to their customers.

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Definitions:

Primary Value Chain

The sequence of activities an organization undertakes to develop, produce, and sell its products or services, generating value for customers.

Production Function

An economic model expressing the relationship between inputs (like labor, capital) used in production and the output of those production processes.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Product Innovation

The development of new or significantly improved goods or services to meet consumer needs or market demands.