Rule: Overall strategies are divided into two different types that are defined as follows:
Cost leadership: Organization seeks to capture market share through maintaining the lowest cost. |
Differentiation: Organization seeks to capture market share by demonstrating product value. |
Choice "B" is correct. Organizations that sell economically inferior goods (necessities such as cotton swabs, light bulbs, etc.) are more likely to posture themselves as cost leaders than organizations that sell economically superior goods (luxuries such as cruise packages, fine china, jewelry, etc.) who will likely seek to differentiate the value of their product as part of their strategy.Choices "a", "d", and "c" are incorrect. Economically inferior products would likely be associated with cost leadership, not differentiation while economically superior products would likely be associated with differentiation.