Nick the Magician's Business Strategy

What business strategy is Nick, the magician, pursuing?

a. Improved services
b. Right-time marketing
c. Focused low-cost
d. Broad low-cost
e. Deterrence strategy

Final answer:

Nick, the magician, is applying a focused low-cost strategy. He targets clients within his own city and provides affordable services. His strategy limits scope but attracts clients looking for inexpensive entertainment.

Explanation:

Nick, the professional magician, is following a 'focused low-cost' strategy. This strategy involves targeting a niche market, in this case clientele within his own city, and offering competitive pricing to attract and maintain his customers. Unlike a 'broad low-cost' strategy that would target a wider audience, focused low-cost strategies focus on a specific, often geographically-limited, customer base.

Therefore, by providing his services exclusively in his own city and charging less than other magicians, Nick is able to keep his costs down while still attracting clients who are looking for affordable entertainment.