Which of the following are the two broad strategies Porter outlined for creating value: Select one: a. Cost reduction and local responsiveness b. Primary and support c. Profitability and profit growth d. Low cost and differentiation
Question
Which of the following are the two broad strategies Porter outlined for creating value:
Select one:
a. Cost reduction and local responsiveness
b. Primary and support
c. Profitability and profit growth
d. Low cost and differentiation
Solution
The correct answer is d. Low cost and differentiation. These are the two broad strategies outlined by Michael Porter for creating value. Low cost strategy involves a company positioning itself as the industry leader by producing at a lower cost than its competitors. Differentiation strategy involves a company offering unique and superior value in terms of product quality, features, or after-sale service.
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