ACCA Applied Knowledge · Business and Technology · Competitive factors
Elara Tailors makes hand-stitched suits only for professional cricketers, charging premium prices for designs tailored to their needs. Which generic strategy does this represent?
This is differentiation focus. Elara serves a narrow segment, professional cricketers, and competes through unique, tailored products at premium prices instead of low cost. Broad differentiation would target the wider market rather than one niche.
- ACost leadership
- BDifferentiation focusCorrect
- CCost focus
- DDifferentiation across a broad market
Explanation
The target market is a narrow segment (professional cricketers) and the firm competes on uniqueness and premium prices rather than low cost. This is differentiation focus. A broad-market differentiator would serve many segments.
Did you get it right without looking?
One question tells you little. A timed set on Competitive factors shows your real accuracy, how long you take and where you lose marks.
More Competitive factors questions
- Which of the following is a barrier to entry that protects existing firms in an industry from new competitors?
- Which of the following is a recognised benefit to an organisation of analysing its activities using the value chain?
- Which of the following best describes the risk of being 'stuck in the middle' in Porter's analysis?
- In Porter's value chain, which of the following is classified as a primary activity?
- Which of the following is most likely to INCREASE the intensity of rivalry among existing competitors in an industry?
- A manufacturer of office chairs sells almost all its output to two large retail chains. Each chain could easily buy from other manufacturers…