CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Anand Foods, a regional biscuit brand, decides to compete by offering a product of comparable quality at the lowest cost in the industry, using scale, tight cost control and standard packaging, targeting the whole market. According to Porter's generic strategies, this is:
This is Porter's cost leadership strategy. The firm aims to be the lowest-cost producer in the industry and serves a broad market through scale and cost control. Differentiation depends on uniqueness, and focus strategies address only a narrow segment, so they do not match.
- ACost leadershipCorrect
- BDifferentiation
- CCost focus
- DDifferentiation focus
Explanation
Seeking the lowest industry cost across a broad market is cost leadership. Differentiation relies on unique features, and the focus strategies target a narrow segment, which is not the case as the whole market is targeted.
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