1. Best Buy is the largest consumer electronics retailer in the United States with annual sales of over $50 billion. The company competes aggressively on price with such rivals as Costco, Sam's Club, Walmart, and Target, but it is also known by consumers for its first-rate customer service. Best Buy customers have commented that the company's sales staff is exceptionally knowledgeable about its products and can direct them to the exact location of difficult-to-find items. The customers also appreciate that demonstration models of PC monitors, digital media players, and other electronics are fully powered and ready for in-store use. Best Buy's technical support and installation services are additional customer service features that are valued by many customers.

How would characterize Best Buy's competitive strategy? Should it be classified as a low-cost provider strategy, a differentiation strategy, or a best-cost strategy?