The $R$ and $J$ Company manufactures a robotic vacuum called the Baxter. The company sells the vacuum to discount stores throughout the country. The Baxter is a basic robotic vacuum with a remote and is significantly less expensive than the robotic vacuum that requires a smartphone and app offered by competitor Stone Manufacturing. Furthermore, the Baxter has experienced production problems that have resulted in significant rework costs. Stone's model has an excellent reputation for quality.

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Requirement $1.$ Is R and J$\text{'}$s current strategy that of product differentiation or cost leadership? What about the strategy of Stone Manufacturing?

Strategy

R and J Company

Stone Manufacturing