Question

According to Virgin CEO David Cush, "Our product is good; we've got good loyalty." This statement affirms Virgin's commitment to which of the following?

a. Broad low-cost strategy

b. Focus low-cost strategy

c. Broad differentiation strategy

d. Focus differentiation strategy

Which of the following contributed most to Virgin's quest for competitive advantage?

a. Having an 83% on-time arrival rate

b. Having an operating profit in its sixth year of operations

c. Having only a few flights per day on many routes

d. Having a high dependence on expensive jet fuel

Answer 1

1) D, FOCUS DIFFERENTIATION STRATEGY

REASON :- according to line "our product is good; we have got good loyalty" the Virgin CEO wanted to ensure to create customer loyalty by providing them unique product.

2) B, HAVING AN OPERATING PROFIT IN ITS SIXTH YEAR OF OPERATIONS

REASON :- when it comes to competitiveness, we must focus on something which overtakes the competitors. When the firm will be having operating profit in its sixth year of operations, that would be competitive.

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