Tuft and Needle makes mattresses, according to Strategy Spotlight 8.5 in the textbook. Which generic strategy most closely represents theirs?
A)differentiation
B)overall cost leadership
C)focus
D)combination

Question

Quizplus · Accepted Answer

Strategy Spotlight 8.5 highlights the success of Tuft and Needle. They researched the industry, discussed mattress manufacturing with component suppliers, and dissected mattresses they bought. What they realized was that the expensive mattress Marino purchased cost only about 300 USD to manufacture, including materials and labor. Considering all of the markups across the supply chain, they realized big-brand mattresses are priced up to 1,000 percent of their actual cost. Their response was to build a cheaper mattress. Their company, Tuft and Needle, sells mattresses through its own website and on Amazon for a fraction of the cost of a brand-name mattress at a furniture store.

Tuft and Needle Makes Mattresses, According to Strategy Spotlight 8