Porter Identified Three Generic Strategies That a Business Could Follow

question 64

Multiple Choice

Porter identified three generic strategies that a business could follow after identifying a market it wanted to enter. Which of the following is not included as one of Porter's three generic strategies?

• A) Broad differentiation
• B) Supplier cost differentiation
• C) Focused strategy
• D) Broad cost leadership

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Definitions:

Cournot Model

A model in economic theory that describes an industry structure where companies compete on the basis of quantity produced, leading to a specific equilibrium.

Collusion Laws

refer to regulations aimed at preventing firms or individuals from working together to manipulate prices, limit competition, or engage in other practices deemed unfair or anti-competitive.

Oligopolies

Market structures characterized by a small number of firms dominating the industry, often leading to limited competition and higher prices.

Price-leadership Model

A strategy where the dominant firm in a market sets the price of goods or services, and other firms in the industry follow suit.