Which one of the following constitutes a valid reason/condition for a company to

Question

Which one of the following constitutes a valid reason/condition for a company to consider shifting away from pursuit of a differentiation strategy keyed to assembling and selling top-quality entry-level cameras at premium prices?

A.When one or more rival companies are spending above-average amounts on advertising in all 4 geographic regions--trying to overcome the advertising advantage they have would be virtually impossible

B.When there are so many companies trying to sell top-quality, premium-priced entry-level cameras that it is very difficult for any one company to capture an appealingly profitable market share

C.When selling a large volume of entry-level cameras is much more important to achieving a high image rating than is producing and marketing entry-level cameras having a high P/Q rating (4-stars and above)

D.When a big fraction of companies in the industry are having more than 1 sales promotion campaign each quarter

E.When the volume of sales that a high-end differentiator can achieve is too small to enable the company to increase the warranty period beyond 90 days

Explanation / Answer

Answer: Option A

When one or more rival companies are spending above-average amounts on advertising in all 4 geographic regions--trying to overcome the advertising advantage they have would be virtually impossible.

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