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:

Asset Matching

A strategy used in portfolio management that involves matching the durations of assets and liabilities to mitigate risk.

Duration Matching

A strategy used in portfolio management to align the durations of assets and liabilities, reducing interest rate risk.

Bond Portfolio Management

The process of creating and managing a collection of bonds to achieve specific investment objectives, taking into account factors like risk tolerance, return requirements, and liquidity needs.

Asset Matching

A strategy used in financial planning to align investments with future liabilities, ensuring that cash flows meet financial obligations when they arise.