Question

Bargain Styles Inc. is an apparel company that caters to the highly price-conscious customers. Through its simple apparel designs, acceptable quality levels, and minimal customer service, the company has been able to sell its merchandise at the lowest prices in the industry. Which of the following generic business strategies is Bargain Styles applying?
A) cost-leadership
B) differentiation
C) niche marketing
D) product diversification

Answer 1

Answer:

A) cost-leadership

Explanation:

He is applying the Cost Leadership strategy. Cost leadership is a business strategy where a business firm tries to become the leader of the market by running at the lowest cost among all the firms through providing simple apparel designs, acceptable quality levels, and minimum customer service as here Bargain Styles Inc is doing so that the customers must be stabled with him.