Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. These are all characteristics of which of the following business-level strategies?

(a) - Integrated cost leadership/differentiation

(b) - Growth strategy

(c) - Product differentiation strategy

(d) - Acquisition strategy

The correct answer is (a) - Integrated cost leadership/differentiation.

Explanation:

Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.