Question

Beach Grub is a chain of "fast casual" restaurants that sells its menu items at higher prices than its competitors. Yet, the restaurant has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Beach Grub adopted in this scenario?

Answer 1

Answer:

Differentiation strategy

Explanation:

Differentiation strategies seek to create higher value for their customers by producing goods and services that offer unique features that differentiate them form their competitors. This is done while trying to keep the same or similar (maybe a bit more expensive) price levels as the competition .

In this case Beach Grub offers a differentiated service while keeping their prices higher than the competition but not as high as luxurious restaurants.