A business that selects a differentiation strategy would ________.
A)add cost to an activity provided it has a positive margin
B)provide essential functions at lowest costs
C)imitate rival companies' strategy and products
D)aim to please stockholders with highest dividends

Question

Quizplus · Accepted Answer

Choosing a differentiation strategy means providing unique and valued products or services that differentiate the business from its competitors. This may incur additional costs, but as long as the margin on the activity is positive, it helps to create a competitive advantage. Providing essential functions at the lowest costs falls under a cost leadership strategy, while imitating rival companies' strategy and products is not a sound business practice. Pleasing stockholders with dividends is a financial goal, but it does not necessarily align with a differentiation strategy.

A Business That Selects a Differentiation Strategy Would ________