Answer:
Option C. Have a low value-to-weight ratio.
Explanation:
The reason is that the transportation cost is connected with the weight of the product whereas the profit of the profit will diminish if the value to weight is low which means that the profit generated is very low which will be paid off to transport the product. So the option C is correct.
Option A is not connected with transportation cost which turns the profitable products into unprofitable products due to its high cost.
Option B is opposite of option C hence both are incorrect.
Option D is incorrect because if the product is only produced in one region then it will be the only firm offering that product which means it can price its product geographically to adjust the transportation cost. Hence it is also not connected with the transportation cost which turns the profitable products into unprofitable products due to its high cost.
Answer:
Yes they are sustainable
Explanation:
The strategies mentioned in the question were laid out my Michael Porter and therefore, we can look analyse his model to understand whether these strategies are sustainable or not.
Porter has categorized strategies into 3 broad categories: Cost Leadership, Differentiation, and Focus strategies (all three are known as "Generic Strategies). Focus strategy is branched out into two sub-segments known as Cost Focus and Differentiation Focus.
Now, the question has already clarified that the strategies in question are both focus strategies. So lets understand what each entails.
Differentiation Focus: A strategy in which the company aims to gain market leadership in a focused market (a specific market) through strategic differentiaion. This strategic differentiaion involves offering a specialized service or a unique product in a niche market. Cost focus strategy is similar in the sense is that that the aim is to offer highly low cost products/services to a niche market. Because of the focus on these niche markets, company's develop a strong understansing of the consumer thereby developing strong brand loyalty with that particular customer base. The key ingredient, again, is that the competitive advantage is being harnessed by focusing just on a particular niche market. Another key component is that the companies using this strategy rely on the consumers in the target market having different needs, tastes, and requirements than consumers in other segments in the industry.
Now, these strategies by desig were put forth my Porter has being sustainable. Hence the term "generic strategies" in that they can be broadly used to create and sustain performance. The focus strategies as defined above are sustainable since they harness the power of having priority knowledge of their target market to provide appropriate services and products. The high brand loyalty and knowledge of consumers give them an edge over competitors (competitive rivalry). Supplier power depends on the nature of products being offered therefore it cant be taken into consideration. Buyer power can be managed since you are prodiving unique service offerings to unique customers. Threat of substitution depends on the product and service offering. Threat of new entry by larger player exists, but due to the focus that the company had in the target market, barriers to entry (long strong brand loyalty) can be developed.
the answer is b:) because high interest rates mean increased cost for all the others since it is not a fixed cost for them
A Credit Bureau maintains and distributes to potential creditors information regarding the creditworthiness of potential debtors. mortgage broker, federal reserve bank, credit bureau, bureau of investigation.
C.B a company that collects information relating to the credit ratings of individuals and makes it available to credit card companies, financial institutions.
Answer:
A) The cost leadership strategy
Explanation:
Cost leadership is providing the service or supply of product without compromising the quality of service or product supplied.
In the given instance also, Maymart supplies goods without any decrease in quality standards that is goods are completely acceptable by customers, and that the goods are supplied at least price in the industry, this provides a competitive advantage to the company, by cost leadership.
As cost is least for consumer for same quality as demanded.
