Question

If it is to be successful, Porter advises that a division possess strong marketing abilities, product engineering, a creative flair, strong capability in basic research and a corporate reputation for quality or technological leadership, for which one of the following generic competitive strategies?

A) focus

B) differentiation

C) overall cost leadership

D) vertical growth

E) concentration

Answer 1

For a successful differentiation strategy as advised by Michael Porter, a division should have strong marketing, product engineering, creativity, research capabilities, and a reputation for quality or technological leadership. The correct answer is option B).

Step-by-step explanation:

According to Michael Porter, for a division to be successful in the differentiation competitive strategy, it needs to exhibit certain capabilities. These include strong marketing abilities, product engineering, a creative flair, a robust capability in basic research, and a corporate reputation for quality or technological leadership. Differentiation strategy involves making a company's products different and more attractive than those of its competitors, which can be achieved through physical aspects, location, intangible aspects, and perception.