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When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that is _________.

A. Broad market-high cost strategy
B. Narrow market-low cost strategy
C. Narrow market-high cost strategy
D. Broad market-low cost strategy

User T McKeown
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1 Answer

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Final answer:

Tiffany & Co. employs a Narrow market-high cost strategy as per Porter's three generic strategies, targeting an affluent customer base willing to pay a premium for quality and exclusivity.The correct option is C.

Step-by-step explanation:

When applying Porter's three generic strategies, Tiffany & Co. has a competitive scope and cost strategy that can be classified as C. Narrow market-high cost strategy. Michael Porter's framework dictates that companies typically employ one of three strategies to gain a competitive edge: cost leadership, differentiation, or focus. In the case of Tiffany & Co., a renowned luxury jewelry retailer, their target is a high-end, affluent market segment, which aligns with a focus strategy. Specifically, they concentrate on a narrow market by catering to consumers looking for premium, high-quality products and are willing to pay a premium price, indicating a high cost strategy.

User Yamazaki
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