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.
- ACost leadership
- BBroad differentiation
- CDifferentiation focusCorrect
- 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.
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
- A packaged-foods company in Pune sells its products at prices similar to rivals, but customers pay a premium because of its brand trust and …
- A company decides to buy its own plantation to supply tea leaves that it earlier bought from outside growers, hoping to capture more value a…
- Sundaram Foods, an Indian packaged snacks firm, installs a company-wide ERP system that serves purchasing, production, distribution and sale…
- Which of the following would reduce the threat of new entrants in an industry, according to Porter's Five Forces Model?
- Which of the following is a primary activity, rather than a support activity, in Porter's value chain?
- A mid-sized Indian apparel firm tries to be the cheapest producer while also spending heavily on premium designer branding and boutique serv…