An issue with having a lower costs focus is that

all of the stated issues are relevant

Generic strategy means

the theory can be applied to any business or industry

Porter’s lower cost focus refers to

lowering the costs of production

Strengths of having a differentiation focus include

being able to charge a premium price

A business can proactively seek a competitive advantage by using

Porter’s Generic Strategies Theory

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Porter's Generic Strategies

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Questions 12

Answers

1
An issue with having a lower costs focus is that
all of the stated issues are relevant
price conscious customers are not loyal
products are standardized and so not specific for customers
customers may relate low cost with low quality
2
Paying less per unit because of purchasing many units at one time is called
economies of scale
economic purchasing
diseconomies of scale
cheaper resources
3
Generic strategy means
the strategies are used by every business
the theory can work for any kind of customer
the theory can be applied to any business or industry
the strategies cost less
4
A business using innovation to create goods and services with a unique difference is focused on
distinguishing
uniqueness
specialisation
differentiation
5
When a business is planning for the future it is said to be taking a
proactive approach
contingency approach
systems approach
reactive approach
6
Differentiation can include
warranties and after sales service
marketing approach
delivery system
all of these strategies
7
Another term for a proactive approach is
acting first
strategic systems
strategic management
operational management
8
‘It is best for a business to choose one focus, either lower cost or differentiation’
False
True
9
Porter’s lower cost focus refers to
lowering the costs of establishing a business
lowering the costs of human resources
lowering the costs of production
lowering the final customer cost
10
Strengths of having a differentiation focus include
attracting price conscious consumers
all of these facets
being able to not be copied by others
being able to charge a premium price
11
A business can proactively seek a competitive advantage by using
Porter’s Generic Strategies Theory
Lewin’s Forcefield Analysis Theory
management skills
Maslow’s Hierarchy of Needs Theory
12
The two areas of competitive advantage in Porter’s theory include
differentiation and lower cost
lower cost and disinterested managers
differentiation and lower profits
lower cost and relocation

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