Differentiation Strategy Refers to One of Porter's Generic Business Strategies

question 108

Multiple Choice

differentiation strategy refers to one of Porter's generic business strategies that

• A) involves controlling expenses and, in turn, lowering product prices targeted at a narrow range of markets segments.
• B) requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.
• C) focuses on reducing expenses and, in turn, lowers product prices, while targeting a broad array of market segments.
• D) requires products to have significant points of difference to target one or only a few market segments.
• E) seeks opportunities by finding the optimum balance between marketing efficiencies versus R&D-manufacturing efficiencies.

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Definitions:

Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Net Income

The net income of a company once all costs and taxes are subtracted from its total revenues.

Solvency Measure

Financial metrics used to assess a company's ability to meet its long-term obligations and its financial stability.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash in the short term.