Final answer:
The correct statement is C, which highlights that choosing a strategic position entails making important trade-offs between value and cost. Strategic positions are dynamic and must adapt to changes, involving decisions between differentiation and cost leadership strategies.
Step-by-step explanation:
The true statement about a strategic position is C: Choosing a strategic position requires making important trade-offs between value and cost positions. A firm has a competitive advantage when it can sustain profits that exceed the average for its industry. Strategic positions are not fixed; they can and should evolve over time in response to changes in the environment, technology, customer preferences, and other factors affecting the industry. Additionally, firms must choose a strategic position that reflects trade-offs between the value they offer to customers and the cost of delivering that value. This is often a choice between differentiation and cost leadership strategies, which have different implications for a firm's strategic position.
Differentiation requires a strategy that offers unique features, services, or brand image that provides value to customers beyond simply lowering prices. Cost leadership, on the other hand, aims at being the low-cost producer in an industry for a given level of quality, allowing a firm to offer lower prices to its customers, potentially driving higher volumes or gaining market share.