Question

The two pivotal factors that distinguish one competitive strategy from another boil down to Multiple Choice (1) whether the company is pursuing a competitive advantage based on product differentiation, and (2) whether the focus is on low cost. O (1) whether the company's market target is broad or narrow, and (2) whether the company is pursuing a competitive advantage linked to lower costs or differentiation (1) whether the company must deal with strong competitive forces, and (2) whether the company chooses offensive or defensive moves to counter its rivals (1) whether the company focuses on low cost, and (2) whether the company chooses offensive or defensive moves to counter the rivals. (1) whether the company chooses offensive or defensive moves to counter its rivals, and (2) whether the company's market target is broad or narrow.

Answer 1

Answer: Option (2)

Explanation:

The competitive strategy of a company refers to the long-term action plan which determines to gain a competitive advantage over the competitors. It is achieved by evaluating their strengths, weaknesses, opportunities, and threats in the industry and thereby comparing it with their own. The two pivotal factors of the competitive strategy are whether the target market is broad or narrow and whether the competitive advantage that the company wants to pursue is linked with achieving lower costs or differentiation.