The classic literature on competitive strategy suggests that a firm can possess two basic types of competitive advantage:
A) low cost and differentiation.
B) low turnover and customer satisfaction.
C) high employee loyalty and customization.
D) wide product variety and economies of scale.

Question

Quizplus · Accepted Answer

The classic literature on competitive strategy, particularly the work of Michael Porter, identifies two basic types of competitive advantage a firm can possess: low cost and differentiation. Low cost focuses on being the cost leader in the market, while differentiation involves making products or services unique and attractive to consumers.

The Classic Literature on Competitive Strategy Suggests That a Firm