Question

During market testing, Sensation Cosmetics (SC) realized that the cosmetics industry was dominated by multiple, well-established brands. These brands mostly sold their products in exclusive outlets and departmental stores. SC management realized that a new entrant would require a different business model to be successful. Thus, SC started selling its products through direct marketing. In this scenario, Sensation Cosmetics accomplished substitution primarily through
a. path dependence.b. technology transfer.c. strategic equivalence.d. knowledge diffusion.

Answer 1

Answer:

The correct answer is c. strategic equivalence.

Explanation:

A definition of strategic business unit can be the set of activities that are carried out by a company for which a common and different strategy can be set to those of the rest of the company's activities. This strategy is autonomous from the rest, but it is not completely independent since all the strategies of the different strategic business units are linked within the company's global plans.