Final answer:
Granville Transportation has chosen the focused low-cost provider strategic approach by aiming at a specific market segment and using AI-guided robots for cost-effective manufacturing. In contrast, historically, Greyhound and Trailways preferred a broader market definition for intercity transportation to avoid monopoly concerns during their merger.
Step-by-step explanation:
Granville Transportation, specifically targeting medium-sized cities with populations between 100,000 and 1,000,000 by providing self-driving buses and streetcars at a lower cost, has adopted the focused low-cost provider strategy. They are using artificial intelligence-guided robots to achieve lower manufacturing costs, which helps them outcompete their rivals within their chosen narrow buyer segment.
This strategic approach involving a narrow market focus paired with cost advantages differentiates from the other strategies, such as broad differentiation, focused differentiation, low-cost provider across broader markets, or best-cost provider that implies offering the best value for money. Regarding the historical merger question about Greyhound Lines, Inc. and Trailways Transportation System, the preferred market definition by the bus companies would have been “the market for intercity transportation” that includes personal cars, car rentals, passenger trains, and commuter air flights.
These companies preferred a broader market definition because it would present them as holding a smaller share of a much larger market, rather than having a dominant position in a narrowly defined market for intercity bus service, which could have been seen as creating a monopoly. This broader view was favorable in the context of getting merger approval, as it indicated they were merely a small piece of the overall intercity transportation market, which resulted in the merger being allowed.