When Heather's bakery competes on the basis of "freshness" and "taste" of the baked goods, it relies on which of Porter's generic strategies?

A) Market segmentation
B) Economies of scale
C) Cost leadership
D) Differentiation
E) Cost focus

Market Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors, who might require separate products or marketing strategies.

Economies Of Scale

Cost advantages that a business achieves due to the scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

Differentiation

A strategy employed by businesses to distinguish their products or services from those of competitors, often through unique features, branding, or quality.