Which of the following best explains Porter's differentiation strategy?
A) Differentiation strategies address whether the market scope is broad or narrow.
B) Differentiation can be broken down into low-cost or broad-scope categories.
C) An airline using the differentiation strategy would be likely to offer travellers refreshments at a reasonable price rather than serve free meals.
D) The statement by Starbucks's international president that "We're not in the business of filling bellies, we're in the business of filling souls" is indicative of a differentiation strategy.

Question

Quizplus · Accepted Answer

Porter's differentiation strategy involves creating a unique product or service that is valued by customers and difficult for competitors to replicate. Starbucks's focus on creating a unique, premium coffee experience that goes beyond just filling customers' physical needs aligns with this strategy. Option A is incorrect as market scope refers to the range of products or services a company offers within its target market, and is not specific to differentiation strategy. Option B is incorrect as low-cost and broad-scope are not the only categories for differentiation. Option C is incorrect as offering refreshments at a reasonable price is not a strong enough differentiation strategy compared to competitors who may offer free meals.

Which of the Following Best Explains Porter's Differentiation Strategy