Question

Hatso, a famous hat retailer chain, opens a new store in Kentucky and chooses to operate solely in the traditional physical markets. It approaches business activities in a traditional manner by operating physical locations such as retail stores and not offering their products or services online. Which of the following business strategies does Hatso follow?

A) brick-and-mortarB) click-onlyC) organizationalD) low-cost leadershipE) differentiation

Answer 1

Hatso operates with a brick-and-mortar strategy, which involves having physical retail stores and no online sales, unlike Amazon, which uses economies of scale and technology to minimize costs.

Step-by-step explanation:

Hatso, a famous hat retailer chain that opens a new store in Kentucky and opts to operate exclusively in traditional physical markets, follows a brick-and-mortar business strategy. This approach focuses on conducting business through physical stores without the option of an online presence. In contrast, businesses like Amazon, which started as a click-only entity, have leveraged economies of scale and technology to maintain a low cost per sale.

Answer 2

Answer: Option A

Explanation: Brick and mortar refers to the business strategies in which the firm decides to operate their business in a traditional manner. Under this, the firms tries to maintain the personal connection with their customers by doing face to face transactions.

In the given case, Hatso has decided to operate their stores physically in this era of online business websites.

Hence from the above we can conclude that Hatso is following brick and mortar.