Accounting Multiple Choice Question – 25 October 2024

Alex plc provides exclusive bird-watching holidays for people over 60 years of age.

In terms of Michael Porter’s generic competitive strategies, this represents a strategy of….?

Select ONE answer:

1. Differentiation
2. Cost leadership
3. Cost focus
4. Differentiation focus

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct == > The exclusivity of the holidays indicates an emphasis on generating competitive advantage through differentiation rather than owl cost, whilst their specialist nature and precise target market (age 60+) indicate a focus strategy rather than a broad competitive scope.

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