Megabyte Center (Scenario) Your Old Friend, Ayoub, Is the Owner and General Manager

Megabyte Center (Scenario)
Your old friend, Ayoub, is the owner and general manager of Megabyte Center, a computer reseller and systems integrator located in Istanbul, Turkey. Since leaving IBM to start a business in his home country, Ayoub's company has steadily grown, due in large part to the business partnerships he's established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Turkey, as well as in other countries in the region. However, since the latest governmental economic reforms over the past ten years, there has been a huge influx of foreign capital into Turkey. For example, several large Asian firms have made Istanbul a center for their European operations. Tourism is on the rise, with over 20 new major hotels built over the past three years. As a result, demand for Megabyte's products and services has increased markedly, but so has the level and diversity of its competition. While Megabyte's customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Additionally, Ayoub has learned recently that several of his former suppliers and business partners are considering establishing local sales offices of their own in Istanbul. Ayoub knows you are very knowledgeable about competitive strategy and calls you asking for advice. You begin by telling him about the types of corporate strategies.
-Once Ayoub has assessed the five forces and determined the threats and opportunities that exist in the current environment, you tell him that he is then ready to select an appropriate competitive strategy. Porter outlines three "generic" strategies: cost leadership, differentiation, and ________.

A) focus
B) segmentation
C) niche
D) stuck in the middle