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murzikaleks [220]
3 years ago
7

Which of the following is not a potential pitfall of a differentiation strategy?

Business
1 answer:
goldfiish [28.3K]3 years ago
8 0

Answer: Option B

     

Explanation: Differentiation strategy refers to the strategy in which a firm tries to differentiate itself from the market by developing a unique product that has never been introduced before. It is done with the objective of gaining competitive advantage by starting one's own market base.

However, this has a major pitfall as the product that the consumers might not find that product valuable as much or the production cost would be too high that it lead to premium pricing.

Hence from the above we can conclude that the correct option is B.

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Olivia recently opened a salon. she strategically priced her salon's services slightly lower than that of other popular salons i
just olya [345]

Answer:

a) comparative advertising

Explanation:

The given scenario exemplifies Comparative Advertising. It is a marketing strategy in which a product or service of a particular company is presented as superior when compared to a competitor's in terms of price, quality, etc. It may involve printing a side-by-side comparison of the features of a company's products next to those of its competitor as here Olivia listed the prices of various services that she offered as well as the prices charged by two other salons in the area for the same services.

3 0
4 years ago
Free entry means that:________
g100num [7]

The correct option is (c) no legal barriers prevent a firm from entering an industry.

No legal barriers:

Non-legal writing non-legal careers anything unrelated to the law or the legal profession.

Because, the industry is free and flexible for enter and exit and no other government interventions will be applicable in that free entry no barriers is there and movability will be 100% for any industry.

Not option (a) Because, the government really levies admission fees for certain types of businesses due to the legal issues surrounding certain businesses and fields, hence they never reimburse the fees.

Not option (b) because, Because it is a government supported program and private businesses cannot participate for free, only semi-government or completely government can do the same, government financed research never helps in sustaining in lower cost patients and hurdles.

Not option (c) because, If a company is operating a successful and reliable business, its marginal cost cannot be zero, and thus will normally not provide free entrance into any industry or type of business.

Learn more about No legal barriers here  brainly.com/question/12513296+

#SPJ4

4 0
2 years ago
Some operational risks in a supply chain are beyond the control of the purchaser or supplier, and some are within their control.
Yanka [14]

Answer:

Letter a. is correct. <u>TRUE.</u>

Explanation:

This statement is correct because a supply chain is part of the macroenvironment, and operational risk can be defined as different results than expected due to internal or external events.

The current economic scenario appears to be unstable, as political, economic, technological, social and other changes are occurring all the time, which can represent significant external risks in a supply chain, where there is no control by the buyer or supplier.

Some examples of uncontrollable operational risks are:

  • Fraud and misconduct;
  • Systemic failure;
  • Safety;
  • Human error.

For this reason, the importance of risk management, which includes planning, identification, qualitative and quantitative analysis, response planning and monitoring and control processes, which together will provide subsidies for less vulnerability in the supply chain and less risk.

8 0
4 years ago
Pro forma income statementAustin Grocers recently reported the following 2016 income statement (in millions of dollars):Sales $7
tia_tia [17]

Answer:

$102 million and 6.25%

Explanation:

The computation is shown below:

a. For net income

As we know that

Net income = (Earning before interest and taxes - interest) × (1 - tax rate)

where,

EBIT is calculated after finding out the sales, operating cost which is given below:

Sales = $700 million  × 1.20  = $840 million

And, the operating costs = 75% × $840 million = $630 million

So, the EBIT is

= $840 million - $630 million

= $210 million

Now the net income is

= ($210 million - $40 million) × (1 - 40%)

= $102 million

2.  Now expected growth rate in net income is

= (Latest year Net income ÷ previous year net income) - 1

= ($102 million ÷ $96 million) -1

= 6.25%

Since dividend payout ratio is same so the growth rate in dividend should be equal to the growth rate in net income i.e 6.25%

3 0
3 years ago
Because of its highly efficient and low-cost distribution system, walmart has a ____ advantage over kmart.
nikklg [1K]

Because of its highly efficient and low-cost distribution system, walmart has a <u>"Sustainable competitive" </u>advantage over kmart.


Sustainable competitive advantages are required for an organization to flourish in todays worldwide condition. Value investors look for organizations that are deals. Keeping in mind the end goal to abstain from acquiring an esteem trap one of the variables we scan for is sustainable competitive advantages.

Without at least one sustainable competitive advantages an organization will most likely be unable to recoup from whatever made the stock turn into a deal. We just need to purchase the loads of organizations that are genuine esteem ventures, not esteem traps. As it were, we need to purchase stocks exchanging beneath their inborn esteem and will develop income for investors.

4 0
4 years ago
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