Question

Quick Eats is a fast-food restaurant that has recently entered the hospitality industry. Since most of its competitors are pursuing a low-cost position and doing well, Quick Eats also wants to adopt the same strategy. Which of the following will be a likely implication of this decision?
A) Quick eats will face low profit potential
B) Quick eats will be able to create higher value for it's customers
C) Quick eats will be better placed to gain a competitive advantage in the industry
D) Quick eats will not face any direct competition in the industry

Answer 1

Answer: Option (A) is correct.

Explanation:

Quick Eats will adopt the same strategy which are used by its competitor in order for them to survive the competition i.e. Since most of Quick Eats competitors are sticking to a low-cost position and doing well in the market, the organization will adopt the same strategy as this will help them to sustain in long run.