Hall and Porter Argue That Firms Have Two Generic Alternative

question 51

Multiple Choice

Hall and Porter argue that firms have two generic alternative strategies for any particular product, these strategies are

• A) low risk focus, low risk focus
• B) retail customer focus, wholesale customer focus
• C) product differentiation, low-cost leadership
• D) low operating leverage, high operating leverage

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Definitions:

Normal Rate Of Return

The standard profit that capital owners can expect to make in a safe investment, typically considered the risk-free rate of return.

Competition

The competition between sellers aiming to enhance their profits, gain a larger share of the market, and boost their sales figures by adjusting different components of the marketing mix.

Expected Rate Of Return

The anticipated profit or loss from an investment, considering both the risk and the return.

Normal Rate Of Return

The average or expected return on investment in a normal market condition, often considered the minimum acceptable compensation for investment risk.