Taco Rocket (Scenario) Imagine that you are the president of Taco Rocket, a new and successful chain of 8 Mexican fast-food restaurants. The success you have experienced in the last 5 years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants? Up to now your success has been based on selling high-quality tacos and burritos at a price that others can't match. Your business is pursuing which of Porter's strategies?

Question

Hayden Kemp

Business

24 August, 12:40

Taco Rocket (Scenario) Imagine that you are the president of Taco Rocket, a new and successful chain of 8 Mexican fast-food restaurants. The success you have experienced in the last 5 years has you thinking of what to do with the business next. Should you expand the business at the current rate? Open new and different restaurants? Up to now your success has been based on selling high-quality tacos and burritos at a price that others can't match. Your business is pursuing which of Porter's strategies?

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Answers (1)

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Elena Zuniga · Answer 1

cost focus

Explanation:

Taco rocket is focusing on narrower part of the fast food market (Mexican food) and is extremely competitive with the price. Thus, it follows the cost focus strategy of Michael Porter, which is often called simply focus.

This strategy does not aim to further differentiate the product in order to increase the price with additional benefits and functionalities. Instead, it relies on the cost to be the competitive advantage.