The biggest and most important differences among the competitive strategies of different companies boil down to
A) how they go about building a brand name image that buyers trust and whether they are a risk-taker or risk-avoider.
B) the different ways that companies try to cope with the five competitive forces.
C) whether a company's market target is broad or narrow and whether the company is pursuing a competitive advantage linked to low cost or differentiation.
D) the kinds of actions companies take to improve their competitive assets and reduce their competitive liabilities.
E) the relative emphasis they place on offensive versus defensive strategies.

Question

Quizplus · Accepted Answer

The different competitive strategies can be broadly classified into two types- cost leadership and differentiation. Companies pursuing cost leadership aim to offer products at a lower cost than their competitors, while those pursuing differentiation focus on creating a unique product or service that sets them apart from competitors. The choice of strategy also depends on the target market- whether it is broad or narrow. Therefore, option C is the most appropriate answer. The other options are either too narrow (A, D, E) or too broad (B) to capture the most significant differences among competitive strategies.

The Biggest and Most Important Differences Among the Competitive Strategies