Michael Porter has consistently advocated that firms that are able to compete based on some extraordinary efficiency in one or more internal processes bring to the market a competitive advantage based on ________.
A) price perception
B) cost leadership
C) value ratio
D) service
E) quality

Question

Quizplus · Accepted Answer

Michael Porter's concept of competitive advantage is based on the idea that firms must establish a cost leadership position to achieve success in a competitive market. This involves developing an extraordinary efficiency in one or more internal processes, which can then be leveraged to offer products or services at a lower cost than competitors. This ultimately leads to a lower price perception by customers, which can help the firm gain a larger market share. Therefore, the best choice is B) cost leadership.

Michael Porter Has Consistently Advocated That Firms That Are Able