Question

Suppose the Digby company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?
A- Niche cost leader
B- Niche differentiation
C- Broad cost leader
D- Broad differentiation

Answer 1

Answer:

D- Broad differentiation

Explanation:

Differentiation strategies are useful if buyers needs and preferences are too diverse, one can be fully satisfied by standardizing product offering.

A broad differentiation strategy is simply the competitive approach used when buyers' needs and preferences are too different or large to be satisfied by a product that is importantly identical from one seller to the other seller.

is fulfilled if a big scope of buyers find the company's offering more enticing than that of rivals and worth a somewhat higher price. It makes profitability to increase if the higher price the product commands exceeds the added costs of achieving the differentiation.