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Caribou Coffee developed an organizational structure and approach very similar to that of another firm. This is an example of:

a) Market segmentation
b) Competitive advantage
c) Imitation strategy
d) Product differentiation

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User Feech
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7.4k points

1 Answer

6 votes

Final answer:

Caribou Coffee's approach of adopting a similar organizational structure to that of another firm is an example of an imitation strategy, which is distinct from product differentiation, competitive advantage, or market segmentation strategies. This imitation allows a company to use established successful business models rather than creating new ones.

Step-by-step explanation:

Caribou Coffee adopting an organizational structure and approach similar to that of another firm is an example of a imitation strategy. This strategy involves copying or emulating business models, practices, products, or services that are already successful in the market. It contrasts with product differentiation, where a company attempts to distinguish its products from those of competitors, often through unique features, branding, or quality. While a competitive advantage can be gained through a variety of strategies, including both imitation and differentiation, market segmentation refers to targeting specific segments of the consumer population, rather than strategies pertaining to organizational structure.

A similar pattern often operates within businesses that achieve success by focusing on a limited range of products, utilizing their core competency, rather than diversifying into a wide array of products. This focus can enable a company to specialize, improve efficiency, and potentially develop a competitive advantage in its chosen area. On the contrary, the imitation strategy may help a company quickly enter a market or stabilize its position by adopting proven methods rather than innovating its own.

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User Tuxdna
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