1. Which is a risk of pursuing a differentiation strategy?
A. A wide difference in cost between differentiated and undifferentiated products
B. Absolutely no difference in cost between differentiated and undifferentiated products
C. A small difference in cost between differentiated and undifferentiated products
D. None of the above
2. When Nike moved its production facilities to Vietnam, which aspects of differentiation did the company use to create competitive advantage?
A. Brand image and number of features
B. A different design aesthetic and new technology
C. Low cost production advantage and a rapid product life cycle
D. Both A and B
3. According to Porter's "generic strategies,” cost leadership implies which of the following?
A. Lowest marginal cost
B. Lowest average cost
C. Lowest total cost
D. Lowest opportunity cost