Which of the following statements is true regarding an organization following a differentiation strategy?
A) Differentiators generally use simple organizational structures.
B) A speedy response to market changes is not vital to the competitive success of a differentiator.
C) An organic structure is more suitable for a differentiator than a mechanistic structure.
D) The organizational structure used by differentiators generally has lower integration than that used by a low cost organization.

Question

Quizplus · Accepted Answer

An organic structure is more suitable for a differentiator than a mechanistic structure because it allows for flexibility, creativity, and innovation, which are important for product differentiation. Differentiators need to be responsive to market changes in order to maintain their unique position and competitive advantage. A simple organizational structure may not provide the necessary resources or capabilities for innovation and differentiation. In fact, differentiators generally have higher levels of integration than low-cost providers, as they need to coordinate their diverse activities and capabilities to deliver a unique value proposition to customers.

Which of the Following Statements Is True Regarding an Organization