Porsche competes on the basis of product performance and status. Its production facilities need to be located where there is a skilled labor force despite the higher costs of that labor. What business strategy is affecting operations management decisions in this case?
A) differentiation
B) cost leadership
C) focus
D) niche

Question

Quizplus · Accepted Answer

Porsche's emphasis on product performance and status, along with its willingness to absorb higher labor costs for a skilled workforce, aligns with a differentiation strategy. This approach seeks to offer unique products or services that justify a premium price, rather than competing primarily on cost.

Porsche Competes on the Basis of Product Performance and Status