An automobile company decides to improve the quality of its products and bring more variety into its product line. The company has decided to adopt ________.
A) focused cost leadership
B) industry-wide differentiation
C) industry-wide cost leadership
D) focused differentiation

Question

Quizplus · Accepted Answer

The company's decision to improve quality and bring more variety suggests that they are trying to differentiate themselves from their competitors in the industry. Industry-wide differentiation involves implementing strategies to establish a unique position in the market and improving product quality and variety is a way to achieve this. Focused cost leadership and industry-wide cost leadership would not be appropriate choices for a company looking to improve product quality and variety. Focused differentiation could also be a possibility, but the fact that the company is looking to bring more variety to its product line suggests that it is not solely focused on a narrow segment of the market.

An Automobile Company Decides to Improve the Quality of Its