Question

A new generation of lunch trucks in cities such as New York, San Francisco, and Los Angeles is serving high-end fare such as hamburgers made from grass-fed cattle, escargot, and crème brulee, at less expensive prices than sit-down restaurants. This illustrates a focused differentiation strategy.
A) True
B) False

Answer 1

Answer:

False

Explanation:

The case stated in question statement does not refer to focused differentiation strategy rather it is an example of Focused cost leadership strategy.

Focused cost leadership strategy is one that is competes on price margins targeting a narrow market and setting the price lower than other already existing competitors.

While, on the other end a focused differentiation strategy targets acquiring market by introducing some different product.

Answer 2

Answer:

A) true

Explanation:

A focused differentiation strategy is a technical term meaning niche strategy. It is basically offering very special and differentiated products to small markets. This strategy is about offering unique products with added customer value.

In this case, I'm 100% that these lunch trucks are expensive and they focus on selling their unique high end hamburgers to customers that value organic products and are willing to pay top price for them.