Question

Mini’s ice cream stand offers different combinations of premium flavors, cones, and toppings to create hundreds of extravagant, customized products. Which generic strategy is Mini’s following in the restaurant industry?

Answer 1

Answer:

She is using the generic differentiation strategy.

Explanation:

This strategy consists of the differences shown by the product or service offered by the company compared to others that do the same, creating something that is perceptive for people who are looking for something new or are tired of the same things as always.

By including new premium flavors, cones and toppings on the menu, she is giving customers the pleasure of choosing for themselves how their ice cream will taste, what shape it will have, what colors it will have.

Answer 2

Answer: The options are given below:

A. Cost leadership

B. Differentiation

C. Focused cost leadership

D. Focused differentiation

E. Both cost leadership and differentiation simultaneously

The correct option is D. Focused Differentiation.

Explanation: Focused differentiation is the strategy that requires the offering of features that are unique in order to fulfill the demands of a narrow market.

In other words, Focused differentiation refers to the approach that a business will take in order to develop a unique product or service that customers will find better and distinctive from products or services offered by competitors.

From the scenario presented above, we an see that Mini's ice cream stand comes up with different and unique products that are customized, this is done in order to distinguish themselves from other competitors, while offering their customers premium products.