Question

Addams Coaches Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Addams pursue instead?

Answer 1

Answer:

A differentiated strategy.

Explanation:

As Addams Coaches Inc. cannot beat its competitors in price, it would be ideal to adopt a differentiation strategy.

Differentiation is a competition strategy that aims to offer differentials to the consumer. By adopting this strategy, it is ideal for the company to conduct research with its target audience to better understand their demands and needs, in addition to adopting new technologies, services and increasing quality. When properly applied, the strategy provides competitive advantages that increase your market share and gain profitability.