Question

It is both reasonable and wise for a company to consider modifying its strategy to strongly differentiate its branded footwear from the offerings of rival companies on the basis of a broad selection of models/styles and high S/Q ratings which it sells at well above-average prices when the company is struggling to achieve the five investor-expected performance targets because the global market for branded footwear is crowded with rival companies trying to outcompete each other with mostly copycat strategies aimed at the relatively small segment of buyers willing to pay premium prices for a wide selection of models/styles having high S/Q ratings. the company's total production costs per branded pair produced at each of the company's production facilities are close to the industry average and its overall costs per branded pair sold are also close to the industry average in every geographic region, as reported on pp. 6 and 7 of the FIR. managers are frustrated by the company's inability to sell enough highly-differentiated branded pairs at premium prices to become the market share leader in most evy geographic region. one or more rivals are marketing 200-300 models/styles of branded footwear with the same (or higher) S/Q ratings at lower retail prices in the Internet segment and lower average wholesale prices in the Wholesale segment, as revealed in the Comparative Competitive Efforts section of the CIR. many other rival companies have a lower cost per branded pair sold in all four geographic

Answer 1

d) is the correct option

When the company is struggling to achieve the five investor-expected performance targets because the global market for branded footwear is crowed with rival companies trying to outcompete each other with mostly copycat strategies aimed at the relatively small segment of buyers willing to pay premium prices for a wide selection of models/styles having high S/Q rating