Which of the Following Is False Regarding How a Differentiation

question 33

Multiple Choice

Which of the following is false regarding how a differentiation strategy can help a firm to improve its competitive position relative to the Porter five-forces model?

• A) Firms will enjoy high customer loyalty.
• B) By increasing firm margins, it avoids the need for a low-cost position.
• C) It reduces buyer power because buyers lack comparable alternatives.
• D) Supplier power is increased, because suppliers will be able to charge higher prices for their inputs.

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Definitions:

Communications

The process of transmitting information, ideas, emotions, skills, and knowledge from one entity or person to another through the use of mutually understood signs, symbols, and semiotic conventions.

Information Systems

Integrated sets of components for collecting, storing, processing, and communicating information, supporting decision-making, coordination, control, analysis, and visualization in an organization.

Levels of Analysis

Different perspectives from which social scientists study phenomena, ranging from the individual level to larger groups like societies or nations.

Organizational Events

Occurrences within an organization that have the potential to affect its operations, culture, or stakeholders, ranging from internal meetings to external changes in the business environment.