or service is based on the cost and the perceived value. The following figure depicts four quadrants based on the cost/price component (vertical axis) and the perceived quality or value (horizontal axis) A B HIGH Opportunistic Premium Strategies in this quadrant Strategies in this are generally not segment rely on AVERAGE sustainable, but may be achieving high profit possible under specific margins COST/PRICE conditions C D Economy Best value LOW Strategies in this segment Strategies in this rely on reducing quadrant rely on production cost and price providing good quality at and rely on high sales attractive prices and volumes or competing is achieving sales volumes segments less attractive to competitors LOW AVERAGE HIGH PERCEIVED VALUE/QUALITY (AdaptedfromLouw and Venter, 2011) 2.1 Describe, using appropriate examples, the strategies mentioned in quadrants B C and D showing the relative advantages and disadvantages of each. (15) 2.2 Discuss the factors that may affect the choice of strategy. (10) END OF STRATEGIC AND CHANGE MANAGEMENT ASSIGNMENT