In Michael Porter’s Generic Competitive Strategies, a company that focuses on producing unique products valued by broad customer segments follows a:
ACost Leadership Strategy
BDifferentiation Strategy
CCost Focus Strategy
DDifferentiation Focus Strategy
Explanation
• Differentiation is a strategy where a firm seeks competitive advantage by offering unique, high-value attributes that command premium pricing.
• Differentiation relies on superior design, strong brand reputation, advanced technology, or exceptional customer service across a broad market target.
• Differentiation targets a broad market, whereas Differentiation Focus targets a narrow niche market.
Exam Relevance
- Topic: Strategic Management
- Subtopic: Porter Generic Strategies

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