Michael Porter Suggests Four Basic Competitive Positioning Strategies That Companies

question 119

Multiple Choice

Michael Porter suggests four basic competitive positioning strategies that companies can follow-three winning strategies and one losing one.Which of the following are considered winning strategies?

• A) Middle-of-the-roader, focus, and overall cost leadership
• B) Focus, differentiation, and middle-of-the-roader
• C) Overall cost leadership, differentiation, and middle-of-the-roader
• D) Overall cost leadership, differentiation, and focus
• E) Differentiation, operational excellence, and focus

Understand and apply basic arithmetic operations and properties to solve real-world problems.

Calculate and analyze the impact of sales taxes on retail transactions.

Compute and interpret the average cumulative investment over a time period.

Determine pricing strategies and cost percentages in a business context.

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Definitions:

Monopoly Model

A market structure where a single seller dominates the market, facing no competition, resulting in high prices and restricted output.

Total Revenue

The entire amount of income generated by the sale of goods or services before any expenses are subtracted.

Economic Profit

The financial difference between total inflow and aggregate outflow, covering both specific and unspecific costs.

Profit-Maximizing Price

The price at which a company can sell its product or service to achieve the highest possible profit.