Which of the following statements is incorrect regarding the "core strategy" component of a firm's business model?
A) A firm's core strategy describes how it competes relative to its competitors.
B) The product a firm chooses has little impact on its core strategy and business model.
C) A company's product/market scope defines the products and markets on which it will compete.
D) From a broad perspective firms typically choose one of two generic strategies: cost leadership or differentiation.
E) The generic strategy a firm chooses greatly affects its business model.

Question

Quizplus · Accepted Answer

The statement that "the product a firm chooses has little impact on its core strategy and business model" is incorrect. In fact, a firm's product is a key component of its business model and can greatly impact its core strategy and competitive positioning.

Which of the Following Statements Is Incorrect Regarding the "Core