CA Intermediate · Financial Management and Strategic Management · Strategic Choices
Under Michael Porter's generic strategies, Zenith Mobiles sells smartphones with unique design and exclusive features at a premium price to customers who value distinctiveness across the whole market. This is a:
This is a differentiation strategy. Zenith Mobiles offers unique design and features across a broad market and charges a premium for them. Cost leadership would depend on low cost, and focus strategies would target a narrow segment instead of the whole market.
- ACost leadership strategy
- BDifferentiation strategyCorrect
- CFocus strategy with cost advantage
- DStuck-in-the-middle position
Explanation
Offering unique features valued by buyers at a premium price across a broad market is differentiation. Cost leadership relies on the lowest cost and price. Focus strategies target a narrow segment, which is not the case here.
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