Question

The competition between Café Aldo Lamberti, a high end restaurant with Italian cuisine based in Cherry Hill, New Jersey, and Olive Garden, a fast casual Italian food joint located in Cherry Hill, New Jersey is likely to be less intense because …

A. They belong to different strategic groups.
B. Café Aldo Lamberti uses fine silverware and Olive Garden uses standard cutlery.
C. Café Aldo Lamberti makes good food.
D. They cater to similar customer segment.

Answer 1

The competition between Café Aldo Lamberti and Olive Garden is less intense because they target different customer segments due to their distinct strategic group positioning in the market.

Step-by-step explanation:

The competition between Café Aldo Lamberti, a high-end restaurant with Italian cuisine, and Olive Garden, a fast casual Italian food joint, both located in Cherry Hill, New Jersey, is likely to be less intense because they belong to different strategic groups. Café Aldo Lamberti targets a more upscale, fine dining experience, while Olive Garden caters to a more casual dining sector. Each restaurant attracts a distinct customer segment, based on factors such as the dining experience, price range, and service level. Therefore, while both establishments serve Italian food, their market positioning and targeted customer bases are different enough to lessen the intensity of direct competition.