According to Michael Porter, superior profitability goes to a firm that
A) creates products similar to their competitors.
B) keeps the gap between value and cost of production smaller than the gap attained by competitors.
C) drives down the cost structure of its business.
D) has the highest cost structure in the industry.
E) has the least valuable product in the industry.

Question

Quizplus · Accepted Answer

Michael Porter suggests that superior profitability is achieved by firms that can drive down their cost structure, allowing them to offer competitive pricing or achieve higher margins.

According to Michael Porter, Superior Profitability Goes to a Firm