If Discovery, a nightclub in Cape Town, South Africa, was pursuing a focused-differentiation strategy, it might
Multiple Choice
acquire the restaurant that is in the building next door.
charge a very high cover fee and book world famous deejays.
offer “buy one, get one free” drinks until 10 ?pm.
allow free entry to LGBTQ individuals.
The correct answer and explanation is:
Discovery, a nightclub in Cape Town, South Africa, pursuing a focused-differentiation strategy, might:
Charge a very high cover fee and book world-famous DJs.
Explanation:
A focused-differentiation strategy involves targeting a specific market segment with unique offerings that justify premium pricing. By charging a high cover fee and booking renowned DJs, Discovery can attract a clientele seeking exclusive and high-quality entertainment experiences. This approach aligns with the strategy’s goal of catering to a niche market willing to pay more for distinctive services.
Analysis of Other Options:
- Offer “buy one, get one free” drinks until 10 pm: This tactic is more aligned with a cost-leadership strategy, aiming to attract a broad customer base through discounts. It doesn’t support the exclusivity required for a focused-differentiation approach.
- Acquire the restaurant in the building next door: While this could enhance the overall experience, it doesn’t directly contribute to differentiating the nightclub’s core offerings. The focus should remain on unique entertainment experiences rather than expanding into adjacent services.
- Allow free entry to LGBTQ individuals: While inclusivity is important, this action alone doesn’t constitute a differentiation strategy. Differentiation typically involves unique offerings or experiences that justify premium pricing, rather than pricing strategies based on customer demographics.
In summary, charging a high cover fee and booking world-famous DJs effectively targets a specific market segment seeking exclusive experiences, aligning with the principles of a focused-differentiation strategy.