A Differentiation Strategy Enables a Business to Address the Five

question 64

Multiple Choice

A differentiation strategy enables a business to address the five competitive forces by

• A) having brand-loyal customers become more sensitive to prices.
• B) increasing economies of scale.
• C) providing protection against rivalry.
• D) serving a broader market segment.

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment.

Opportunity Cost

The economic impact of dismissing the next prime alternative while reaching a decision.

Scarce Resources

Limited supplies of inputs necessary for production, leading to trade-offs and choices in their allocation.

Capital

Assets or money possessed by an individual or organization, which can be used for initiating a business or investment purposes.