Michael Porter argues that
A) those firms that create superior value will achieve superior profitability.
B) standardization of product is a basic strategy for attaining a competitive advantage in an industry.
C) it is necessary for a firm to have the lowest cost structure or create the most valuable product.
D) it is important that the gap between value and the cost of production be smaller than that of competitors.

Question

Quizplus · Accepted Answer

According to Michael Porter, low cost and differentiation are two basic strategies for creating value and attaining a competitive advantage in an industry.
Porter argues that those firms that create superior value will achieve superior profitability. Porter notes that it is not necessary for a firm to have the lowest cost structure or create the most valuable product; rather it is only important that the gap between value and the cost of production be greater than that of competitors.

Michael Porter Argues That