Question

Which of the following are included as an example of a competitive strategy:

1. Two companies produce kitchen appliances. One company is more high-end than the other
2. Two companies produce laptops. One company prices their laptops lower due to the range is smaller and the design is kept non-customized
3. Two hair salons perform haircuts but their physical setups are different as well as their core attribute
Select one:
a. 1 and 2
b. 2 and 3
c. 1 and 3
d. 1, 2, and 3

Answer 1

All three scenarios presented are examples of competitive strategies where companies use either differentiation or cost leadership to carve out their niche in the market. The correct answer that includes all examples of a competitive strategy is option d. 1, 2, and 3. Option D is correct.

Step-by-step explanation:

The examples presented relate to competitive strategies employed by businesses in the marketplace. Such strategies are evident in instances where firms seek to distinguish their products or services from those of competitors, in hopes of attracting a unique customer base or providing a different value proposition.

Two companies produce kitchen appliances, where one is more high-end. This example can represent a differentiation strategy, where a company focuses on quality and brand prestige to compete.

A company that prices laptops lower because of a smaller range and standardized design is employing a cost leadership strategy, where they compete primarily on price.

Two hair salons with different physical setups and core attributes may also be using differentiation strategies to appeal to different customer segments within the market.

Given these points, all three scenarios are examples of competitive strategies. Hence, the correct answer to which examples are included in a competitive strategy is d. 1, 2, and 3.