Question

As the strategic manager of CutRite Scissors, you are tasked with producing a strategy forintroducing a new line of premium scissors. Your competitor produces a line of similar scissors at acost of $1 and sells them for $12. Because your company has inferior production capabilities, yourscissors will cost $3 each to produce. However, your handle is proven to be more comfortable thanyour competitors'. Assuming you are guaranteed to sell the same number of units as yourcompetitor, which of the following strategies is most likely to achieve a competitive advantage?
a. Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, thensell the scissors for $12.
b. Continue to produce CutRite scissors for $3 but set the price at $10.
c. Offer a buy-one-get-one-free sale on CutRite scissors.
d. Market CutRite scissors as a higher-quality alternative and sell them for $15.

Answer 1

Answer:

d. Market CutRite scissors as a higher-quality alternative and sell them for $15.

Explanation:

Remember, competitive advantage means been in a favorable or superior position as a company.

Note that, from the question  irrespective of the price, CutRite Scissors will sell the same number of units as their competitor.

Therefore, marketing CutRite scissors as a higher-quality alternative and sell them for $15.