1) Jake's Taxi Service is a new entrant to the taxi industry. It has achieve success by staking out a unique position in the industry. How did Jake's Taxi Service most likely achieve this position?
a) providing long-distance cab fares at a lower rate than competitors; servicing the same area as competitors
b) providing long-distance cab fares at a lower rate than competitors; servicing a smaller area than competitors
c) providing long-distance cab fares at a higher rate than competitors; servicing a larger area than competitors
d) providing long-distance cab fares at a higher rate than competitors;servicing the same area as competitors
2) Silver Screen Cinemas Inc. and Digi Now Inc. are two companies that own and run movie theaters in malls and other commercial areas. While Silver Screen Cinemas Inc. pursues a cost-leadership strategy, Digi Now Inc. adopts a differentiation strategy. Which of the following statements is most likely true of this scenario?
a) Silver Screen Cinemas will charge a premium price for its customers, while Digi Now will implement everyday low pricing.
b) Digi Now and Silver Screen Cinemas will not be direct competitors to each other, and their customer segments will overlap very little.
c) Digi Now will keep its customer service at an acceptable level, whle Silver Screen Cinemas will provide superior customer service.
d) Silver Screen Cinemas and Digi Now will use a similar approach to create value for customers by attempting to offer everything to everyone.