Question

Organic Eats is a restaurant that caters to the needs of a small percentage of highly health-conscious consumers. It has an all-organic, vegan menu. Since there are very few restaurants that offer the same unique services, customers are willing to pay a premium price for its products and services. In this scenario, Organic Eats is following a
A. product diversification strategy.
B. liquidation strategy.
C. mass market strategy.
D. focused differentiation strategy.

Answer 1

Answer:

D. focused differentiation strategy

Explanation:

Focused differentiation strategy is a type of strategy employed by a company or business, whereby a particular small group of customers are targeted and provided with differentiated products that cannot be easily gotten elsewhere. This type of strategy is usually effective in a market where competition is limited, such as can be seen in the market of organic products and foods.

The scenario as described in the question above, suggest that Organic Eats is following a focused differentiation strategy, as they target only a small percentage of consumers that are highly health-conscious, and also provide a differentiated product consisting of an all-organic, vegan menu. There is also limited competition from other competitors as there are few restaurants that offer the same unique services that Organic Eats offer.