Because his customers are demanding price concessions and enhanced service levels in return for their continued business, Ariel decides that he wants to compete by offering unique products that are widely valued by customers.What strategy is Ariel following?

Question

Quizplus · Accepted Answer

Ariel is following a differentiation strategy by offering unique products that are highly valued by customers, which is different from competing solely on price or trying to be the lowest cost provider (cost leadership) or focusing on a narrow segment of the market (focus). There is no indication that he is following a stability strategy, which is typically characterized by maintaining the status quo and avoiding changes to the business.

Because His Customers Are Demanding Price Concessions and Enhanced Service