When companies decide how to compete in a market segment, they are formulating
A) corporate strategy.
B) business-level strategy.
C) diversification strategy.
D) functional-level strategy.

Question

Quizplus · Accepted Answer

Business-level strategy is focused on how companies compete within a specific market segment. This includes decisions on product differentiation, pricing, and marketing, among others. Corporate strategy is focused on the overall direction and portfolio of the company, while diversification strategy relates to entering new industries or markets. Functional-level strategy is focused on specific functions, such as finance or operations.

When Companies Decide How to Compete in a Market Segment