Question

Beach Grub is a chain of "fast casual" restaurants that sells its menu items at higher prices than its competitors. Yet, the restaurant has a large customer base due to its wide product portfolio and superior customer service. Which of the following generic business strategies has Beach Grub adopted in this scenario?

A. Differentiation
B. Market Penetration
C.Product Diversification
D. Cost-Leadership

Answer 1

A. Differentiation strategies

Step-by-step explanation:

• Different strategies seek to create greater value for their customers by creating goods and services that offer unique features that make them competitors. This is done by trying to keep the same or similar (perhaps slightly more expensive) price level as the competition.
• In this case Beach Grub offers a variety of services, keeping its prices higher than competing but not more than luxury restaurants.