Element Inc. manufactures a new range of smartphones to take on incumbent competitors. Element grabs a huge chunk of the market share in its first year because of its feature-rich smartphones. Element's smartphones come with bigger screen sizes, greater memory capacities, and a free online music subscription for two years. The competitors fail to lure customers despite massive price reductions. Which of the following strategies is being used by Element?
A)focused niche strategy
B)loss leader strategy
C)cost leadership strategy
D)product differentiation

Question

Quizplus · Accepted Answer

Element is using the product differentiation strategy by offering smartphones with unique features that set it apart from competitors and make customers prefer it even with higher prices.