Which of the following statement 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 "The product a firm chooses has little impact on its core strategy and business model" is incorrect. The product a firm chooses plays a vital role in its core strategy and business model as it helps to define the products and markets on which the firm will compete. Thus, option B is incorrect. The other options correctly describe the components and importance of a firm's core strategy.

Which of the Following Statement Is Incorrect Regarding the "Core