Question

The text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. Which of the following is not one of these three approaches?
A. automated and flexible manufacturing systems

B. exploiting the profit pool concept for competitive advantage

C. deriving benefits from highly focused and high technology markets

D. coordinating the extended value chain by way of information technology

Answer 1

Answer:

C. deriving benefits from highly focused and high technology markets

Explanation:

Firms that engage in cost-leadership approach seek to combine a low per-unit income with large sales for profit making purposes. Typically, but not always, they are more inclined to market their products and services to a large population base or a niche with a high demand volume. While differentiation enables a company to accomplish a competitive advantage. A Competitive advantage enables a company to achieve more strides over other companies offering related product substitutes. It is an important marketing process that is of critical economic importance to a business.

It should be noted that deriving benefits from highly focused and high technology markets is not part of the approaches to combining overall cost leadership and differentiation competitive advantages.