contestada

Addams Coaches Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Addams pursue instead?

A. Create a strategic group through mergers.
B. Compete based on inter-group rivalry, not intra-group rivalry.
C. Pursue a differentiated strategy.
D. Close the business untill the cost of gas decreases.

Respuesta :

jepessoa

Answer:

C) Pursue a differentiated strategy.

Explanation:

There are two basic marketing strategies that firms can use:

  1. competitive pricing: setting a very competitive price in the market, but is not feasible in this case due to higher costs.
  2. product differentiation: offering differentiated products that best suit the needs of the company's customers. Since differentiated products are perceived as higher quality, a higher price can be charged.

Otras preguntas