In Michael Porter's generic strategies model, market scope measures the breadth or narrowness of the target market, and source of competitive advantage that reflects whether the advantage is sought through lower price or product uniqueness.

Question

Quizplus · Accepted Answer

This statement is true. Market scope and source of competitive advantage are two of the three key components in Michael Porter's generic strategies model, with the third being the choice of competitive scope or focus. Market scope refers to the breadth or narrowness of the target market, while source of competitive advantage reflects whether the advantage is sought through lower price (cost leadership) or product uniqueness (differentiation).

In Michael Porter's Generic Strategies Model, Market Scope Measures the Breadth