ACCA Applied Knowledge · Business and Technology · Technological factors
A clothing company uses 3D printing and customer-entered measurements to produce each garment individually, at a unit cost similar to its mass-produced range. Which strategic outcome does this MOST directly support?
This supports mass customisation: technology lets the firm tailor each garment to the customer while keeping unit cost close to that of standard products, so it gains differentiation without a major cost penalty. It is not standardised cost leadership or simple price-based market penetration.
- AMass customisation, which allows differentiation without a large cost penaltyCorrect
- BA pure cost leadership strategy based on standardised output
- CMarket penetration through lower prices on an unchanged product
Explanation
Producing individual items at near mass-production cost is the definition of mass customisation, supporting differentiation. Cost leadership via standardised output is the opposite of tailoring each garment. Market penetration with an unchanged product does not apply because the product offering is being personalised.
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