CS Professional · Strategic Management and Corporate Finance · Competitive Positioning
A Pune-based firm makes hand-tooled leather footwear solely for orthopaedic patients with specific foot conditions. It charges higher prices and designs everything around this small group's needs. Which generic strategy best describes this?
This is a focus strategy based on differentiation. The firm serves a narrow buyer segment, orthopaedic patients, and competes through specialised design and premium prices instead of low cost or wide market coverage.
- ABroad cost leadership
- BBroad differentiation
- CFocus based on differentiationCorrect
- DFocus based on cost
Explanation
The firm serves a narrow segment (orthopaedic patients), so it is a focus strategy. It competes through specialised design and premium pricing rather than low cost, so it is differentiation focus. Broad differentiation is wrong because the target is not the whole market.
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