Which is not one of the major business strategies discussed?

• A. Product differentiation
• B. Internal growth
• C. External growth
• D. Divestment

Answer: (D)

The main idea here is distinguishing which approaches are used to build a business’s competitive position and drive growth. Product differentiation creates value by offering something unique that customers want, making it a classic strategy for gaining a competitive edge. Internal growth (organic growth) expands the business using its own resources—developing capabilities, products, and markets from within. External growth grows the business by combining with or acquiring other companies, or forming strategic partnerships to gain scale or capabilities quickly. Divestment, however, focuses on selling off or winding down a business unit or asset to reallocate resources or simplify the portfolio. It reduces scope rather than driving growth or competitive advantage, so it isn’t considered one of the major growth strategies.