Question

A global financial services company recently relocated to a high cost of living area where the per capita income is well above the national average. Focusing on making their products appealing to their new targeted customer base, the CEO introduces new proposals to specifically attract this high income market. Which of the following is this scenario an example of?

a. a focus strategy.
b. an acquisition strategy.
c. a cost-leadership strategy.
d. a strategic alliance.

Answer 1

The financial services company's introduction of new proposals tailored for a high-income market after relocating to a high cost of living area exemplifies a focus strategy. Therefore correct option is A

Step-by-step explanation:

The scenario described is an example of a focus strategy. This is a marketing approach where a company chooses to concentrate on a specific market segment. In this case, the financial services company is targeting a high-income market by adapting its products to the preferences and needs of consumers in a high cost of living area.

By doing so, they are aiming to make their products more appealing to the wealthier customer base present in their new location. This contrasts with an acquisition strategy, which involves taking over another company, a cost-leadership strategy, which focuses on becoming the low-cost producer in an industry, and a strategic alliance, which refers to a partnership between two or more firms.