Question

Scarlet Inc., a high-end fashion retail store, has been successful over the years due to its consistent focus on quality and customer satisfaction. Despite a number of retailers diversifying their portfolios to include all kinds of customers, Scarlet Inc. has consistently focused on one particular segment, high-end consumers, by manufacturing high-end products.

Based on this information, which of the following concepts introduced by strategist Jim Collins is most likely followed by the store in this scenario?

a. Strategic alliance
b. Hedgehog
c. Crowdsourcing
d. Cost leadership

Answer 1

Answer: Hedgehog

Explanation: The hedgehog concept in business management focuses on three questions -

What is your passion?

What are you best at?

What derives your economic engine?

In the given case Scarlet inc. is focusing on their existing customer service, as they understand that they are best at it in the market.

Hence from the above we can conclude that Scarlet inc. is following Hedgehog.