ACCA Applied Knowledge · Business and Technology · Competitive factors
According to Porter, which of the following is a generic strategy that a business can adopt to gain competitive advantage?
Cost leadership is one of Porter's three generic strategies, alongside differentiation and focus. Market penetration comes from Ansoff's matrix and vertical integration is a growth direction, so neither is a generic strategy for gaining competitive advantage.
- ACost leadershipCorrect
- BMarket penetration
- CVertical integration
Explanation
Porter's three generic strategies are cost leadership, differentiation and focus. Market penetration belongs to Ansoff's growth matrix, and vertical integration is a direction of growth, not a generic strategy.
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