Casper Sleep makes mattresses,according to Strategy Spotlight 8.3 in the textbook.Which generic strategy most closely represents theirs?
A) differentiation
B) low-cost leadership
C) focus
D) combination

Question

Quizplus · Accepted Answer

Compared to large firms, new ventures often have simple organizational structures that make decision making both easier and faster. The smaller size also helps young firms change more quickly when upgrades in technology or feedback from the marketplace indicate that improvements are needed. They are also able to make decisions at the time they are founded that help them deal with the issue of controlling costs. For example, they may source materials from a supplier that provides them more cheaply or set up manufacturing facilities in another country where labor costs are especially low. Thus, new firms have several avenues for achieving low-cost leadership. By taking a product that was typically sold in specialty stores with extremely high markups and, instead, allowing customers to order high quality products online at much lower prices, Warby Parker changed the eyeglass business. Casper Sleep aims to do the same thing in the mattress market.

Casper Sleep Makes Mattresses,according to Strategy Spotlight 8