Question

Porter's four generic strategies for achieving competitive advantage are: (A) cost leadership, product differentiation, cost focus, focused differentiation.(B) cost leadership, product differentiation, cost challenger, product challenger.(C) price leadership, product differentiation, price challenger, cost differentiation.(D) price determination, cost leadership, product differentiation, distribution savings.(E) cost leadership, product differentiation, consumer differentiation, focused differentiation.

Answer 1

Answer:

The correct option is: (A) cost leadership, product differentiation, cost focus, focused differentiation.

Explanation:

According to Michael Porter, the generic strategies that explains the process by which a company pursues a competitive advantage across its chosen market scope.

The three generic strategies used to achieve above average performance and competitive advantage are cost leadership, product differentiation, and focus. The two variants of the focus strategy are cost focus and focused differentiation.

Therefore, the four generic strategies are cost leadership, product differentiation, cost focus, focused differentiation.