Allset Motors, a manufacturer of self-driving delivery trucks, is working on developing its next-generation vehicles. It has decided on a strategy of focusing on a narrow buyer segment and outcompeting its rivals by offering buyers customized vehicles at a lower cost than its rivals. What basic strategic approach has Allset Motors decided upon?

Answer: Best-cost strategy

Explanation: In simple words, best cost strategy refers to the strategy under which the organisation focuses on increasing the customer satisfaction by providing the goods at a lower price. Under this strategy the organisation increases the value for money.

In the given case, The motor company is planning to provide customized product at a lower price than the competitors.

Thus, from the above we can conclude that the company is using the best cost strategy.