42BELOW-A Wheat Vodka Made by a Small Distillery in New

question 20

Multiple Choice

42BELOW-a wheat vodka made by a small distillery in New Zealand-has captured a share of the prestige segment of the market,especially hotels such as the Ritz in London and El Bulli in Spain.Identify the strategy used by the firm.

• A)prospector strategy
• B)differentiated defender strategy
• C)low-cost defender strategy
• D)reactor strategy

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Definitions:

Opportunity Cost

The value of the best alternative foregone as a result of making a decision, a fundamental concept in economics that emphasizes the cost of trade-offs.

Production Possibility Frontier

A diagram that outlines every possible maximal production scenario for various items, considering a fixed amount of resources.

Trade

The exchange of goods or services between parties.

Absolute Advantage

The capacity of an entity to generate a product or service more effectively than its rivals, utilizing fewer resources.