Refer to the Scenario below to answer the questions that follow.

The Grocers of Werdna (Scenario)

In the fictional Canadian town of Werdna there are six grocery stores. Three of them are described here.

"Penny Pincher" is by far the cheapest store. Prices are 1020% below competitors. Customers are required to bring their own bags or boxes and they are expected to pack their own groceries. The store is clean and tidy and products are displayed in their shipping containers. While the store does have most products, it only carries one or two brands of each item and it does not carry specialty goods.

"The New Delhi Market" is located in a neighbourhood where most of the residents have recently immigrated to Canada from India. The store specializes in authentic ingredients and products, many of which it imports directly from India. Since these products are unique to this store, there is little price competition on these items. In addition to English and French, the staff in the store speak Hindi, Punjabi, and several other languages spoken in India.

"HomeTown Grocery" has committed to deliver the best service of any its competitors. Although the prices are not the most competitive in town, customers enjoy complimentary coffee and tea as they shop. There are many personnel available to help shoppers find what they are looking for. The store's fresh departments take special orders from customers for everything from birthday cakes to specialty cuts of meat from the butcher. The store even offers a service where you can email or phone in your grocery list and they will shop it, pack it, and deliver it to your home for a nominal fee.

Penny Pincher demonstrates which competitive strategy?

Select one:

A. focus

B. stuck in the middle

C. generic

D. cost leadership