What Is Differentiation in Porter's Strategy to Surpassing the Competition

question 69

Multiple Choice

What is differentiation in Porter's strategy to surpassing the competition?

• A) Creating a unique culture with your customer base
• B) Offering a product or service that is perceived as being "unique" in the marketplace
• C) Providing purchasing history for individual customers and allowing them to compare their history to others
• D) Developing a unique working environment; one that incorporates IT to allow for efficient and off-site working

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Definitions:

Inflation Premium

The additional interest rate that lenders charge borrowers to compensate for the loss of purchasing power due to inflation.

Short-Term Bond

A bond that matures in a short period, usually less than five years, making it less sensitive to interest rate changes compared to long-term bonds.

Default Risk Premium

The additional return that investors require to compensate them for the risk of default by the borrower.

Par Value

The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the base value of a stock set by the issuing company.