Question

Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. These are all characteristics of which of the following business-level strategies

Answer 1

These are all characteristics of Integrated cost leadership/differentiation following business-level strategies.

Explanation:

An enterprise level approach where distinct goods are sold at low cost on the market, understood as an Integrated cost leadership / differentiation. Distinct product means the special qualities of consumer preferences and price leadership means the commodity is sold at the cheaper cost, i.e. at a margin slightly better than average price. Particularly at a global frontier, it is helpful in acquiring broad customer base. Here Zara is expecting from its firm to attract the global consumers by selling its products in relatively lesser price, to fulfill this expectation appropriate designers have been hired to manage costs.