Question

A river barge company can offer cheaper, although slower, per pound transportation of products to companies when compared with transportation by air, truck, or rail. The river barge company should first target customers whose companies use

a. the integrated cost leadership/differentiation strategy.
b. either of the focus strategies.
c. the cost-leadership strategy.
d. any of the strategies except the focused differentiation strategy.

Answer 1

the cost-leadership strategy.

Thus the correct option is (C).

Step-by-step explanation:

The river barge company should first target customers whose companies use the cost-leadership strategy. The cost-leadership strategy focuses on providing products or services at the lowest possible cost in the industry. Since the river barge company offers cheaper transportation, aligning with a cost-leadership strategy, it would attract customers looking for cost-effective transportation solutions.

Companies employing a cost-leadership strategy prioritize efficiency, cost minimization, and competitive pricing. By choosing the river barge company, these companies can take advantage of the lower transportation costs, making it a strategic fit for their cost-centric approach. This targeting strategy aligns with the fundamental principle of matching the company's offerings with the needs and preferences of its target customers, ensuring a competitive advantage in the market. Therefore, option (c) is the correct choice, indicating that the river barge company should focus on customers employing the cost-leadership strategy to maximize its appeal in the market.

Thus the correct option is (C).