According to Porter, the processes and systems in an organization pursuing differentiation strategy must ________ to avoid negative margins.

Question

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In a differentiation strategy, organizations offer unique products or services that set them apart from competitors, but these products or services may come at a higher cost. Therefore, it is crucial for the organization to create sufficient value to cover these costs and avoid negative margins. Choice B is not applicable in a differentiation strategy as it focuses on providing products at the lowest costs, which goes against the goal of differentiation. Choice C may or may not be necessary, but it is not directly related to avoiding negative margins. Choice D is not relevant as increasing procurement does not necessarily lead to creating sufficient value to cover costs.

According to Porter, the Processes and Systems in an Organization