Question 1: Citi Co is a bank whose target customers are wealthy individuals. Citi Co offers a premium service, including many personal services that are not available through rival banks. It charges a significant annual fee for these services. The company makes extensive use of technology throughout its operations in order to control costs.
Which type of generic strategy that Citi Co is pursuing? Justify your answer.
Question 2: The management team of XYZ Co has identified that it is very important to maximize the economies of scale it creates. XYZ Co buys in bulk from its suppliers, to secure the largest discounts possible. XYZ Co has recently invested in new technology for its production line, to provide the increases in efficiency and productivity which XYZ Co needed to maintain its competitiveness.
On the basis of the information provided, what type of generic strategy is XYZ Co MOST likely to be pursuing? Justify your answer.