Question

While there are many routes to competitive advantage, the two biggest factors that distinguish one competitive strategy from another are

A. whether a company can build a brand name and an image that buyers trust
B. whether a company's target market is broad or narrow and whether the company is pursuing a low cost or differentiation strategy
C. whether a company can achieve lower costs than rivals and whether the company is pursuing the industry's sales and market share leader's role
D. whether a company can offer the lowest possible prices and whether the company can get the best suppliers in the market

Answer 1

The primary factors for competitive strategy are the target market scope and choose between low-cost or differentiation. Building a brand and creating product differentiation are crucial for competitive advantage, particularly in markets leaning toward monopolistic competition or oligopoly.

Step-by-step explanation:

The two biggest factors distinguishing one competitive strategy from another are whether a company’s target market is broad or narrow and whether the company is pursuing a low-cost or differentiation strategy. Achieving competitive advantage often involves building a recognizable brand name and developing a substantial level of market differentiation through various means such as the physical aspects of the product, location, intangible aspects like reputation or guarantees, and buyer’s perceptions influenced by advertising and brand loyalty. This differentiation is central to monopolistic competition and can also contribute to an oligopoly if the market leader has a well-established brand and economies of scale that deter new competitors.