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1. A company that operates in a highly competitive and
dynamic industry decides to adopt a differentiation strategy
to gain a competitive advantage over its rivals. Which of
the following actions is most likely to support this strategy?
a) Reducing the costs of production and distribution to
offer lower prices than competitors
b) Offering standardized products and services that appeal
to a broad market segment
c) Investing in research and development to create
innovative and unique products and services*
d) Focusing on a narrow market segment and meeting its
specific needs and preferences
Rationale: A differentiation strategy involves creating
products and services that are perceived as distinctive and
superior by customers, and that can command a premium
price. Investing in research and development is one way to
achieve this, as it can lead to innovation and uniqueness.
The other options are more consistent with a cost
leadership or a focus strategy.
2. A company that operates in the global fast-food industry
faces intense competition from local and regional players,
as well as changing consumer preferences and regulations.
To cope with these challenges, the company decides to
pursue a transnational strategy. Which of the following
capabilities is most essential for the success of this
strategy?
a) The ability to standardize operations and products acrossÂÂ
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