Michael Porter Argues That Firms Can Create Competitive Advantages for Themselves

question 30

Multiple Choice

Michael Porter argues that firms can create competitive advantages for themselves by adopting one of the following strategies:
I.Cost leadership: firms strive to use the latest technology to lower the costs of production.
II.Differentiation: firms can differentiate their products by providing customers with unique delivery alternatives.

• A)I and II are correct.
• B)I and II are incorrect.
• C)I is correct, II is incorrect.
• D)I is incorrect, II is correct.

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Definitions:

Inventory Purchases

The total cost of buying raw materials and goods for sale during a specific accounting period.

Collection Pattern

A specific sequence or method used to collect data, payments, or resources, often used in accounting or project management.

Operating Expenses

The costs associated with running a business that are not directly tied to the production of goods or services, such as selling, general, and administrative expenses.

Cash Balance

The amount of cash a company has available at any given moment, reflecting its liquidity position.