A Differentiation Strategy Works Best When

question 71

Multiple Choice

A differentiation strategy works best when

• A)technological change is fast-paced and competition revolves around rapidly evolving product features.
• B)buyers' needs are homogeneous.
• C)many rival firms are also pursuing a differentiation approach.
• D)there are few other ways to make a product unique to buyers.
• E)firms have ample excess cash to invest in R&D activities.

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Definitions:

Financial Planning

The process of creating strategies for managing finance, including budgeting, saving, investing, and planning for future financial needs.

Forecast Growth

The predicted increase in value or size of a company, economy, or particular financial metric over a specified future period.

External Financing

Funds raised by a business from outside sources, including loans, bond sales, and equity investments, as opposed to internal financings such as retained earnings.

Investment Decisions

The process of deciding where to allocate resources and capital in order to generate returns in the future.