E12-21 (book/static) Question Help Gianni Gianni & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Gianni Gianni wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinctive Gianni Gianni T-shirt. Gianni Gianni presents the following data for its first two years of operations, 2016 2016 and 2017 2017. LOADING... (Click to view the data.) Administrative costs depend on the number of customers Gianni Gianni has created capacity to support, not on the actual number of customers served. Gianni Gianni had 3 comma 600 3,600 customers in 2016 2016 and 3 comma 500 3,500 customers in 2017 2017. Read the requirements LOADING... . Requirement 1. Is Gianni Gianni's strategy one of product differentiation or cost leadership? Explain briefly. Gianni Gianni & Sons follows a cost leadership product differentiation strategy in 2017 2017. Gianni Gianni's T-shirts are distinct from priced lower than its competitors and generally regarded as equal to inferior to superior to competitors' products. To succeed, Gianni Gianni must continue to differentiate its product and charge a premium price. lower its costs and reduce its selling price. Click to select your answer(s) and then click Check Answer. 8 parts remaining Clear All Check Answer Data Table 2016 2017 1. Number of T-shirts purchased 215,000 245,000 2. Number of T-shirts discarded 15,000 20,000 3. Number of T-shirts sold (row 1 - row 2) 200,000 225,000 4. Average selling price $ 30.00 $ 31.00 5. Average cost per T-shirt $ 15.00 $ 13.00 6. Administrative capacity (number of customers) 4,500 4,250 7. Administrative costs $ 1,633,500 $ 1,593,750 8. Administrative cost per customer (row 7 / row 6) $ 363 $ 375 PrintDone