While there are many routes to competitive advantage,the two biggest factors that distinguish one competitive strategy from another involves:
A) whether a company can build a brand name and an image that buyers trust.
B) whether a company's target market is broad or narrow and whether the company is pursuing a competitive advantage linked to low costs or differentiation.
C) whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader role.
D) finding effective and efficient ways to strengthen the company's competitive assets and to reduce its competitive liabilities.
E) getting in the best strategic group and establishing a dominating role.

Question

Quizplus · Accepted Answer

The two biggest factors that distinguish one competitive strategy from another involve whether a company's target market is broad or narrow (i.e., the scope of the business) and whether the company is pursuing a competitive advantage linked to low costs or differentiation (i.e., the basis of competition). This is known as Porter's Generic Strategies framework. Option A is a component of brand management, which is important for competitive advantage, but not the biggest factor. Option C is one of the generic strategies (i.e., cost leadership), but the other component in the framework is missing. Option D is not a framework for competitive strategy. Option E is not a concept in competitive strategy.

While There Are Many Routes to Competitive Advantage,the Two Biggest