Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?
A. It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.
B. It allows the firm to create incentives to foster process innovation in order to drive down cost.
C. It allows the firm to reduce its cost below that of competitors while offering acceptable value.
D. It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
Answer: D
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