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CS Professional · Strategic Management and Corporate Finance · Competitive Positioning

A regional Indian packaged-snacks company has developed a premium range of millet snacks and sells it only to health-conscious urban consumers in three metros, charging a price premium for its distinctive positioning. Under Porter's generic strategies, this is best described as:

This is differentiation focus. The company offers a distinctive premium millet product and targets only a narrow segment, health-conscious urban consumers in a few metros. Broad differentiation would address the whole market, and cost leadership would not support a price premium.

  1. ACost leadership
  2. BBroad differentiation
  3. CDifferentiation focusCorrect
  4. DStuck in the middle

Explanation

The firm offers a distinctive product (differentiation) to a narrow target segment of health-conscious metro consumers (focus). Broad differentiation would require serving the wider market, so that option is wrong. The premium price shows it is not pursuing cost leadership.

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