Question

Andrew's Home Center has created a unique situation for itself in its industry that allows the company to not only provide excellent value to its customers but also control its costs. This is known as ______.

1) competitive disadvantage
2) strategic positioning
3) the competitive challenge
4) competitive parity

Answer 1

Andrew's Home Center's ability to provide value while controlling costs is known as strategic positioning, which enables it to maintain a competitive edge in its industry.

Step-by-step explanation:

When a company like Andrew's Home Center can provide excellent value to its customers while controlling its costs effectively, this is known as strategic positioning. Strategic positioning enables a company to distinguish itself from competitors through a unique value proposition. This could be achieved through a variety of ways such as a well-respected brand name, economies of scale, or unique service offerings that act as a form of competitive advantage. For example, monopolistic competitors like a gas station or a restaurant with a unique feature create a situation where they can attract customers and prevent long-term economic profits by other competitors. In the context of Andrew's Home Center, strategic positioning allows it to maintain a competitive edge in its industry by balancing cost control with customer value.