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Give an example for why a firm would pursue each of the three grand strategies.

a) Cost Leadership - Expanding market share through low prices
b) Differentiation - Offering unique products to a niche market
c) Focus - Broad product range appealing to diverse customer base
d) All of the above

User Chakradhar
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Final answer:

b) Differentiation - Offering unique products to a niche market

Companies pursue different grand strategies, including cost leadership for capturing market through low pricing, differentiation for targeting niche markets with unique products, and focus for offering a wide range of products to a specific segment.

Step-by-step explanation:

Firms adopt different grand strategies to compete in the market and achieve business success. These strategies include cost leadership, differentiation, and focus. An example of a firm practicing cost leadership might be a big-box retailer like Walmart, which aims to attract a broad customer base by offering products at lower prices than competitors. For differentiation, Apple is a prominent example, with its highly differentiated products that offer unique design and technological innovation, appealing to a niche market that values these aspects. Lastly, the focus strategy could be exemplified by a company like Rolls-Royce, which concentrates on the luxury car market and offers a broad range of products to captivate a diverse yet specific customer base interested in high-end vehicles.

User David Costa
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