RD - Commission on Dietetic Registration (CDR) Practice Test

What strategy is being employed by ABC Hospital when it modifies its service to offer home meal replacements?

1. Strategic analysis

2. Competitive advantage

3. Focus strategy

4. Strategic implementation

The correct answer is: Focus strategy

The strategy of modifying services to offer home meal replacements reflects a focus strategy. This approach is centered on tailoring services or products to meet the specific needs of a particular market segment or niche. By providing meal replacements to individuals who may require dietary management, such as those recovering from illness or individuals with specific dietary restrictions, ABC Hospital demonstrates an understanding of its target audience's unique needs. A focus strategy allows organizations to concentrate their efforts on serving a specific group effectively, potentially leading to stronger customer loyalty and a better overall service experience. This approach can differentiate the hospital from competitors who may not offer such specialized services, thereby enhancing its reputation and attracting specific demographics seeking tailored nutritional options. Other approaches like strategic analysis, competitive advantage, and strategic implementation have their significance, but they don't capture the essence of narrowing down to a specific market segment as effectively as a focus strategy does.