Question

Swan Song is a spa that caters to the needs of a small percentage of highly health-conscious consumers. It offers state-of-the-art treatments in a luxurious setting. Since there are very few spas that offer the same unique services, customers are willing to pay a premium price for its products and services. In this scenario, Swan Song is following a:_______.
a. liquidation strategy.
b. broad differentiation strategy.
c. focused differentiation strategy.
d. product diversification strategy.

Answer 1

Answer:

c.

Explanation:

Based on the information provided within the question it can be said that in this scenario Swan Song is following a focused differentiation strategy. This is a strategy in which a firm competes in a market based on uniqueness and usually target only niche markets. Which is exactly what Swan Song does by targeting only a small percentage of highly health-conscious consumers.