Porter's Generic Strategies Quiz by Shubhrata Shrestha | Oct 8, 2025 | 0 comments Porter's Generic Strategies Quiz 1. Which of the following is NOT one of Porter’s Generic Strategies? A. Cost Leadership B. Differentiation C. Diversification D. Focus None 2. The main aim of the cost leadership strategy is to: A. Offer premium products at high prices B. Become the lowest-cost producer in the industry C. Serve a small market segment exclusively D. Focus on continuous innovation only None 3. In cost parity, a business: A. Charges higher prices but lowers production costs B. Charges the same prices as competitors but reduces costs C. Targets high-income customers in niche markets D. Sells luxury products at discount prices None 4. Which of the following is an example of a firm using differentiation? A. McLaren producing luxury sports cars B. Bajaji producing low-cost trishaws C. Hyundai using cheap raw materials D. A budget airline reducing seat space None 5. The focus strategy is divided into: A. Product and Service Focus B. Cost Focus and Differentiation Focus C. Market and Brand Focus D. Strategic and Tactical Focus None 6. A disadvantage of the differentiation strategy is that it: A. Limits customer loyalty B. Requires heavy investment in R&D and marketing C. Cannot lead to brand recognition D. Is only suitable for small firms None 7. “Stuck in the Middle” means: A. A firm serves both local and international markets B. A firm fails to choose a clear competitive strategy C. A firm sells products at both high and low prices effectively D. A firm focuses on middle-class consumers None 8. One advantage of the focus strategy is that it: A. Attracts a large mass market B. Reduces costs for all competitors C. Builds customer loyalty in niche markets D. Eliminates the need for marketing None 9. Which of the following is a risk of cost leadership? A. High brand image B. Price wars among competitors C. Strong customer loyalty D. Reduced industry rivalry None 10. According to Porter, why should firms avoid mixing strategies? A. It increases product variety B. It enhances decision-making C. It confuses customers and reduces profitability D. It leads to better brand differentiation None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
