When The Home Depot opened stores in Canada, it ran a series of ads featuring an animated hammer that showed that the U.S.-based home improvement store had the lowest prices. According to Michael Porter, which of the following positioning strategies did The Home Depot adopt to deal with existing Canadian stores that sold similar products?
A) cost leadership
B) diversification
C) focus
D) differentiation
E) repositioning

Question

Quizplus · Accepted Answer

Cost leadership is defined as the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that the firm can offer the product or service at the lowest price in the industry.

When the Home Depot Opened Stores in Canada, It Ran