The Chief Difference Between a Broad Differentiation Strategy and a Focused

question 24

Multiple Choice

The chief difference between a broad differentiation strategy and a focused differentiation is:

• A) the size of the buyer group that a company is trying to appeal to.
• B) the degree of bargaining power that buyers have.
• C) whether the product is strongly differentiated or weakly differentiated from rivals.
• D) the type of value chain being used to achieve a differentiation-based competitive advantage.
• E) the number of upscale attributes incorporated into the product offering.

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Definitions:

Yield-To-Maturity

The total return anticipated on a bond if it is held until the date it matures.

Total Assets

The sum of all current and long-term assets owned by a company, used to determine the financial strength of a business.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on the income or profit level.

Unlevered Cost

The cost of funding a project or investment without any associated debt, reflecting the cost of capital that is equity financed.