Question

The fact that both Whole Foods (a high-end grocery store) and Aldi (a grocery store offering a select number of inexpensive, fast moving items of appropriate quality given the price point) have a competitive advantage in the grocery store industry is an indication that

A. following the same generic business strategy can allow for two firms competing in the same industry to have a competitive advantage at the same time.
B. following a different generic business strategy within the same industry can lead to a competitive advantage for more than one organization.
C. in order to evaluate whether Whole Foods has a sustained competitive advantage it is useful to compare it, relative to its competitor Aldi, from a cost perspective.
D. in order to evaluate whether Aldi has a sustained competitive advantage, it is useful to compare it to Whole Foods from a differentiation perspective.

Answer 1

Following a different generic business strategy within the same industry can lead to a competitive advantage for more than one organization.

Step-by-step explanation:

The fact that both Whole Foods and Aldi have a competitive advantage in the grocery store industry is an indication that following a different generic business strategy within the same industry can lead to a competitive advantage for more than one organization. Whole Foods, as a high-end grocery store, focuses on differentiation through offering premium natural and organic products. On the other hand, Aldi, as a discount grocery store, focuses on cost leadership and offering a select number of inexpensive items of appropriate quality. This demonstrates that both differentiation and cost leadership strategies can be successful in the grocery store industry.