Question

Which of the following is NOT a value driver of a broad differentiation strategy?

create product features that appeal to a wide range of buyers

improve customer service or add extra services

seek out high quality inputs

emphasize human resource management activities that improve the skills, expertise, and knowledge of company personnel

Answer 1

Broad differentiation strategy is a part of Porter’s generic strategies. The primary objective of this strategy is to manufacture and deliver all the possible differentiating features of a product, for which a buyer can express willingness to buy and consume. There are various value drivers which help in facilitating the differentiation strategy:

• Creating products having mass appeal
• Investing in R&D so as to facilitate innovation and technological advancement in the production process
• Enhancing customer responsiveness and elaborating the consumer experience by working on the feedback presented by the consumers

Therefore, emphasizing on human resource management activities that improve the skills, expertise, and knowledge of company personnel is not a direct value driver of broad differentiation strategy.

Answer: Option D : emphasize human resource management activities that improve the skills, expertise, and knowledge of company personnel