CA Inter P6 · Chapter 12 · Question 8 of 10
Kalpa Hotels runs a small chain of luxury wellness resorts serving only high-income, health-conscious travellers, offering unique Ayurvedic treatments at premium prices. Under Michael Porter's generic strategies, its strategy is best described as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Focused differentiation
Explanation
Kalpa targets a narrow buyer segment (high-income, health-conscious travellers) rather than the whole market, so it follows a focus strategy. Within that niche it competes through unique features at premium prices rather than low cost, so the strategy is focused differentiation. Broad differentiation would target the mass market.
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