Final answer:
An automotive manufacturer selling limited high-end, custom-built cars with advanced technology is using a focused differentiation strategy. This strategy aims to offer unique products at a premium, targeting a specific market segment, which helps the company stand out among international competitors.
Step-by-step explanation:
The automotive manufacturer that sells a limited number of high-end, custom-built cars, with technologically advanced power systems, is likely employing a competitive strategy that focuses on producing unique products for a targeted group of customers. This approach is best described as a focused differentiation strategy. This strategy involves offering products or services that are perceived as unique or superior within a narrow or focused market segment, often allowing the company to charge premium prices.
In the context of international trade and competitive pressure, manufacturers must find ways to differentiate themselves from rivals. Large automobile factories can make and sell their products around the world, leading to innovation and enhanced responsiveness to consumer demands. A company that follows a focused differentiation strategy can create higher perceived value for its customers compared to competitors, allowing it to stand out in a crowded market full of diverse international players such as Toyota, Honda, and BMW.