Question

Both National Electronics and Big Buy Electronics are two major electronics stores that offer competitive prices for washing machines. Recently, National Electronics lowered their price because they received double the shipment of washing machines and need to get rid of inventory. What should Big Buy Electronics do to stay competitive?

Answer 1

National Electronics needs to lower their price because of the double inventory. Big Buy Electronics, on the other hand, needs to lower their price, too, to compete at the market. If the company will not do this, they will get lower sales at that given time.