Answer:
Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.
Step-by-step explanation:
Cost-leadership strategy: When a company lowers the operating costs but provides the highest quality goods and services to the customers, the company is said to be a cost-leadership. The company follows that strategy to maximize the value proposition of the firm. A store, for instance, 7-Eleven, provides a discount for the coffee.
Differentiation strategy: When a company asks the consumers to pay more for its unique goods and services, which are customized according to the customers' desire, it is called a differentiation strategy. A limited-edition Rolex watch is an example of the strategy.
They are competitors as they both are operating movies in various places. However, they cannot be direct contenders because Silver Screen Cinemas tries to lower the cost while Digi Now Inc. seeks to customize the cinemas or broadcast the movies according to the consumers' demand.