Which of the following is NOT one of Porter's five tests of a good strategy?

• A. Unique value proposition
• B. Tailored value chain
• C. Distinctive tradeoffs
• D. Sustained market growth

Answer: (D)

Porter's five tests of a good strategy focus on how a company positions itself and how its activities reinforce that position over time. The idea is that a strong strategy is driven by a unique, valuable offering, a value chain that’s deliberately tailored to support that choice, and clear trade-offs that prevent imitators from copying the whole package. The activities should fit together to create a coherent system, and the advantage should be sustainable as the market evolves.

Unique value proposition embodies the need to offer something distinctly valuable to customers. Tailored value chain shows the importance of designing activities specifically to support the chosen position. Distinctive tradeoffs are crucial because they create a defensible place in the market by making competing on the same axes harder. Sustained market growth, while important for business planning, is not a criterion by which a strategy’s quality is judged; it’s an external opportunity or goal, not a test of the strategy’s coherence and defensibility.