Question

Thomas is the owner of a landscaping company that caters to a very wealthy clientele. His company has struggled to differentiate itself from the other high-end landscapers in the area, but because he has hired several expensive but highly-qualified team members, Thomas is unable to shift to a cost leadership strategy. Which strategy is most likely to achieve a competitive advantage?

Answer 1

Answer: Product differentiation strategy

                                         

Explanation: In the given case, the industry in which Thomas works depicts features of oligopoly with few firms operating at high level. Thus, increase in price by Thomas would shift the demand for consumers to other firms.

    Hence Thomas should opt  for product differentiation strategy and should increase those features which classify its products different from the others. In such industries, quality is the core essence and costumers are wiling to pay slight higher prices if the quality of the product offered is higher than others.

Hence Thomas should narrow the completion and should focus on inventing some unique features in his products.