Question

Volta Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-generation electric vehicles. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting rivals by offering buyers customized autonomous, self-driving electric vehicles at a lower cost than rivals. What basic strategic approach has Volta Motors decided upon?

a) focused differentiation
b) best-cost provider
c) low-cost provider
d) broad differentiation
e) focused low-cost

Answer 1

Volta Motors has adopted a focused low-cost strategy by targeting a narrow buyer segment and providing customized electric vehicles at a lower cost than competitors.

Step-by-step explanation:

Volta Motors, a manufacturer specializing in autonomous, self-driving electric vehicles, has decided upon a focused low-cost strategy. This strategic approach is characterized by targeting a narrow buyer segment and providing customized products at a lower cost than competitors. By prioritizing cost efficiency while specializing in a niche market, Volta Motors aims to deliver value to a specific group of buyers seeking affordable, self-driving electric vehicles without compromising on the customization and technological advancement.