If a company such as Volvo adds the all-wheel-drive technology to one of its car lines to exploit a growing market for luxury cars,while maintaining its position in the established markets,we can infer that the company follows the _____ strategic type.
A)high-cost prospector
B)differentiated analyzer
C)low-cost prospector
D)differentiated endorser

Question

Quizplus · Accepted Answer

The differentiated analyzer strategic type is characterized by adding new features or technologies to existing products to appeal to a broader range of customers while maintaining a strong presence in the current markets. In this case, adding all-wheel-drive to a luxury car line is an example of differentiation, and Volvo is still maintaining its position in the market for luxury cars. Therefore, option B is the best choice. The high-cost prospector type involves introducing new products with new technology, which is not the case here. The low-cost prospector type involves introducing low-cost products in new markets. The differentiated endorser type involves using the company's reputation or image to differentiate its products, which is also not relevant here.

If a Company Such as Volvo Adds the All-Wheel-Drive Technology