Noodles 2 Go and Sal's Trattoria are two restaurants serving Italian cuisine. While Noodles 2 Go focuses on providing quick, affordable pasta dishes for the lunch crowd, Sal's Trattoria focuses on serving home-style dishes in an upscale, romantic setting. Both companies have been able to gain a competitive advantage. This is most likely because the companies have
A) benefitted from economies of scale.
B) entered into a cartel arrangement.
C) pursued distinct strategic positions.
D) engaged in direct imitation and substitution.

Question

Quizplus · Accepted Answer

In this scenario, the two firms have gained a competitive advantage by pursuing distinct strategic positions. Cost-leadership and differentiation are distinct strategic positions. The key to successful strategy is to combine a set of activities to stake out a unique position within an industry.

Noodles 2 Go and Sal's Trattoria Are Two Restaurants Serving