Which of the following statements is true according to the model developed by Michael Porter for formulating organizational strategy?
A)Firms should first analyze their industry and then develop a cost leadership strategy or a strategy based on differentiation.
B)Firms should first analyze their market and then develop a strategy based on association.
C)Firms should develop alternative portfolio models to incorporate information about market opportunities and competitive positions.
D)Firms must continually strive to be the cost follower in the industry or market segment they compete in.

Question

Quizplus · Accepted Answer

According to Michael Porter's model, firms should first analyze their industry and then choose between a cost leadership strategy or a differentiation strategy. This is because the nature of the industry and the competitive forces within it will determine which strategy is most effective in achieving a competitive advantage. Alternative portfolio models and being a cost follower are not primary components of Porter's model.

Which of the Following Statements Is True According to the Model