Question

Edward Marshall Boehm, Inc. is a small, high-quality porcelain art objects company that has been very successful, particularly at producing images of vanishing species of birds. These pieces are complex sculptures selling from $100 to over $20,000, and are sought by some sophisticated collectors. The company is run by Mr. and Mrs. Boehm (pronounced "beam"): he is the artist and master of the complex hard paste porcelain manufacturing process; she is in charge of the marketing and financial aspects of the business. The demand for the artistic creations is growing, but many of the company’s past policies no longer seemed appropriate. The Boehms wanted to position the company for the long run. Their stated goals for the company were "to make the world aware of Mr. Boehm’s artistic talent, to help world wildlife causes by creating appreciation and protection for threatened species, and to build a continuing business that could make them comfortably wealthy, perhaps millionaires."

Required:
1. Based on the above information, what competitive strategy could Edward Marshall Boehm pursue and what competitive strategy is not a good option, given its goals?
O Focused differentiation, but not cost leadership
O Broad differentiation, but not global strategy
O Unrelated diversification, but not broad differentiation
O Related diversification, but not the focused cost approach
O Cost leadership, but not transnational strategy

Answer 1

O Focused differentiation, but not cost leadership

Step-by-step explanation:

A focused differentiation strategy is based on serving specific markets or niches. They offer differentiated products that are valued and looked for by specific type of customers. In this case, Boehm's customers are sophisticated collectors, they are not just average ordinary customers. Their customers know about sculptures and they look for certain types of products. That is why they can be considered a niche.

A cost leadership strategy would involve trying to sell their products at a low cost and that does not apply to artists that are trying to establish their brand. Mr. Boehm's sculptures are not cheap and probably will never be.