Rainbow Resorts Inc.has multiple tropical resorts in various locations.In a crowded market that caters to all kinds of consumers,this resort caters mainly to LGBTQ customers with a guaranteed hassle-free holiday experience at a premium price.What strategy is Rainbow using to gain competitive advantage?
A)A low-cost provider strategy
B)A broad differentiation strategy
C)A focused low-cost strategy
D)A focused differentiation strategy
E)A best-cost provider strategy

Question

Quizplus · Accepted Answer

Rainbow Resorts Inc. is using a focused differentiation strategy by focusing on a specific market segment - the LGBTQ community - and providing them with a unique and premium holiday experience that caters to their specific needs and preferences. This allows Rainbow to differentiate itself from other resorts that cater to a broader market, and gain competitive advantage in the crowded tropical resort industry.