Skip to content

CS Professional · Strategic Management and Corporate Finance · Competitive Positioning

A company in Coimbatore makes pumps for all types of farmers across India, but a competitor decides to make only solar-powered pumps for small farmers in drought-prone districts, offering specialised features and service. Which generic strategy is the competitor following?

The competitor follows a differentiation focus strategy. It serves a narrow segment, small farmers in drought-prone districts, and competes through specialised solar-pump features and service rather than the lowest cost or a broad market offering.

  1. ADifferentiation focusCorrect
  2. BCost leadership
  3. CBroad differentiation
  4. DStuck in the middle

Explanation

The competitor chooses a narrow target segment (small farmers in drought-prone areas) and competes through specialised features and service, which is differentiation focus. Cost leadership and broad differentiation both need a broad market. Stuck in the middle means no clear strategy, which is not the case here.

Did you get it right without looking?

One question tells you little. A timed set on Competitive Positioning shows your real accuracy, how long you take and where you lose marks.

More Competitive Positioning questions