Which of these strategies is Randy employing by producing rubber gaskets as the lowest cost provider?

Randy is employing a cost focus strategy by positioning his business as a lowest cost provider of rubber gaskets. This strategy involves targeting a specific market segment and striving to be the most cost-effective option available within that niche. By focusing on cost leadership, Randy can attract price-sensitive customers who are looking for affordable alternatives.

Cost focus aims to gain a competitive edge by minimizing production expenses, which can be achieved through economies of scale, process optimization, or negotiating better terms with suppliers. This approach allows Randy to offer lower prices than his competitors, thereby increasing his market share within the rubber gasket segment.

The other options are less applicable in this context. Market differentiation involves creating unique products to stand out from competitors, which contrasts with the cost-focused strategy that prioritizes low prices over distinct features. A globalization strategy would refer to expanding into new international markets, while product diversification entails broadening the product range rather than focusing on a single low-cost product. In this case, Randy’s focus on providing rubber gaskets at the lowest cost signifies a clear commitment to the cost focus strategy.