ACCA Applied Knowledge · Business and Technology · Competitive factors
According to Porter, which of the following is a generic strategy a firm can follow to gain competitive advantage?
Differentiation is one of Porter's generic strategies, alongside cost leadership and focus. Market penetration and diversification belong to Ansoff's growth matrix, and vertical integration is a growth method, so none of those is a Porter generic strategy.
- AMarket penetration
- BDifferentiationCorrect
- CVertical integration
- DDiversification
Explanation
Porter's three generic strategies are cost leadership, differentiation and focus. Market penetration and diversification come from Ansoff's matrix, and vertical integration is a growth direction rather than a generic strategy.
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