Question

BloomsJay Resorts Inc. has multiple tropical resorts in various locations. In a crowded market that caters to all kinds of consumers, this resort caters mainly to gays with guaranteed hassle-free holiday experience at a premium price.

What strategy is BloomsJay using to gain competitive advantage?

A. a low-cost provider strategy
B. a broad differentiation strategy
C. a focused low-cost strategy
D. a focused differentiation strategy
E. a best-cost provider strategy

Answer 1

Correct option is (D)

Step-by-step explanation:

Focused differentiation strategy aims at targeting a small customer base and offering products that cater to their needs. It focuses a niche market, hereby gaining competitive advantage. This strategy also enables organizations to charge premium prices for the products offered since they are not easily available with the competitors.

In this case, Blooms Jay resorts is catering to the needs of gays, a small community by providing them hassle free stay. Since, this is not offered by any other service provider in the market, there is high demand for their hotels and people would be willing to pay higher prices for the rooms.