The strategic planning team for HomeTown Grocery was meeting to address the small but steady sales decline the store had experienced in the two years since Penny Pincher opened.The members began discussing possible changes to the company's current strategy when one of the managers suggested,"Let's cut back on some of the extra,more expensive services we offer and then we can lower prices to compete with Penny Pincher." By being more like their competitors HomeTown's competitive strategy could become ________.

Question

Quizplus · Accepted Answer

By cutting back on services and focusing on price, HomeTown would be positioning itself in between a differentiated strategy (more expensive services) and a focused strategy (lower prices). This "stuck in the middle" strategy is generally considered ineffective and not a sustainable competitive advantage.

The Strategic Planning Team for HomeTown Grocery Was Meeting to Address