Question

Home Smart Inc. is a chain of supermarkets that sells its products at higher prices than its competitors. Yet, the supermarket chain has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Home Smart adopted in this scenario?

Differentiation
Strategic trade-offs
create higher customer perceived value than the value that competitors create.
economic value created is greater than that of its competitors.

Answer 1

Differentiation

Step-by-step explanation:

Differentiation is when a firm makes its product unique and create great value to customers compared to the value created by the competitors. t is a process where a firm makes its product a brand among perspective buyers by making it more attractive and unique.

When a firm's product becomes a brand, an increase in price of such product will not deter people from buying it. Such would even be preffered compared to competitors' despite price increase.

Industries, firms engages in differentiation in order to have control over range of products. This also increases profitability for the firm because there would be more demand for the firm's product.

Example of differentiation include provision of word and visual version of text books for students,