Backyard BBQ is a chain of casual restaurants that promises affordable barbecue using top-quality local ingredients. However, the company has struggled to achieve a competitive advantage because of its high overhead costs. Which of the following scenarios is most likely to result in a competitive advantage?

Question

Quizplus · Accepted Answer

Successful value innovation requires that a firm's strategic moves lower its costs and also increase the perceived value for buyers. Lowering a firm's costs is primarily achieved by eliminating and reducing the taken-for-granted factors that the firm's industry rivals compete on. Perceived buyer value is increased by raising existing key success factors and by creating new elements that the industry has not offered previously. By eliminating its costly brick-and-mortar locations and offering delivery from a central kitchen, Backyard BBQ lowers its costs and increases value for customers seeking both convenience and quality.

Backyard BBQ Is a Chain of Casual Restaurants That Promises