Question

Sweet Leaf Tea, a Texas-based maker of bottled iced tea, is a small but fast-growing firm that has gained a loyal following for its use of fresh, organic ingredients in its beverages. Although beverage industry experts recommended that Sweet Leaf replace the organic cane sugar and honey it uses with less costly high-fructose corn syrup, Sweet Leaf refused because of the company's mission to provide a high-quality, organic beverage to consumers. The 11-year old company has 50 employees, and its products are available in 30% of the U.S. market. Sweet Leaf Tea recently received multi-million dollar investments which will enable the business to expand its national presence.

Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation?

Answer 1

Which of the following, if true, best supports the idea that Sweet Leaf Tea has implemented a competitive strategy of differentiation

Loyal customers of Sweet Leaf Tea seek products that are USDA certified organic despite the associated higher costs.

this is because USDA prove that company uses organic ingridient to make its iced tea which differentiate it from its rival companies in terms of quality.