Question

Fascinating Fez, a 125-year-old hat and cap manufacturer, markets very high-quality stylish headwear, many of which cost more than $1,000 each, to fashionistas globally, always maintaining its reputation of superior value in its narrow market. Fascinating Fez is using a cost-focus strategy.a) trueb) false

Answer 1

Fascinating Fez is using a cost-focus strategy is False

Explanation:

The business aims to achieve a competitive advantage in its particular market segment through a cost based approach.

In this case, differentiation approach is the technique used by the hat maker. When applying this approach, a organization insists on the supply of differentiated goods, namely exclusive goods of superior quality this differ from rivals.

Cost concentration is on cost savings in specific markets, thus discriminating between different goods that meet the needs of customers in a broad business segment.