Silver Screen Cinemas Inc. and Digi Now Inc. are two companies that own and run movie theaters in malls and other commercial areas. While Silver Screen Cinemas Inc. pursues a cost-leadership strategy, Digi Now Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?
A) Silver Screen Cinemas will charge a premium price for its customers, while Digi Now will implement everyday low pricing.
B) Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.
C) Digi Now will keep its customer service at an acceptable level, while Silver Screen Cinemas will provide superior customer service.
D) Silver Screen Cinemas and Digi Now will use a similar approach to create value for customers by attempting to offer everything to everybody.
Correct Answer:
Verified
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