Which of the following organizations operates a corporate strategy of differentiation?
Which of the following organizations operates a corporate strategy of differentiation?
A . A chain of retail stores sells in bulk and offers discounts to only its loyal customers.
B . The finished product of a company is run through the Six Sigma process to ensure customer satisfaction.
C . A company develops a premium product that is distinctively adaptive to weather changes.
D . A firm spends considerable money on print and television advertising to attract top-tier customers.
Answer: C
Explanation:
Michael Porter developed the phrase Generic Competitive Strategies. This is composed of three generic strategies, which are, cost leadership, differentiation, and focus.
A company may choose to lower costs or differentiate based on what is important to their customers to demand higher prices on products or focus by offering products to a select segment of their target market.
Differentiation focuses on setting a product or service apart by giving it unique features that consumers value and for which they will pay a higher price for higher value. Six Sigma is a set of methods and tools for process improvement by eliminating errors.
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