6.docx - 6 In which one of the following situations does it...

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6. In which one of the following situations does it make the most sense for a company to consider shifting away from pursuit of a strategy to strongly differentiate its branded footwear from the offerings of rival companies and sell its footwear at a premium price? When most every you are reviewing the other rival company has 10 million or more pairs of production capacity and seems to be pursuing a low-cost, low-price, high-volume strategy When a big percentage of industry rivals are trying to sell branded footwear differential on the basis of high S/Q ratings, many models/styles, high celebrity appeal ratings, and extensive advertising When other companies pursuing a differentiation strategy are spending heavily on bids to sign celebrities to contracts to endorse their brand of athletic footwear When one or more rivals produce branded footwear with the same (or Higher) S/Q rating and the same (or higher) number of models/styles-these are the only two approaches to differentiation that lead to strong company performance When competition among rival companies is much stronger for branded footwear than for private-label footwear, thus resulting in the profit margins for branded footwear being lower than those for private-label footwear 7. If you are reviewing the industry-low, industry-average, and industry-high values for the benchmarked data in the latest issues of the FIR, which one of the following would you consider to be an untrustworthy indication that one or more elements of your company’s costs are likely to be too high compare to those of rival companies? Your company’s administrative expenses per pair sold are the highest in the industry Your company’s labor cost per pair produced are much as 20% above those of the industry average in those geographic regions where your company has plants Your company’s total compensation package for plant worker is about 10% above the industry average in those geographic regions where company has production plants Your company’s total manufacturing costs per branded pair produced are close to the highest in the industry
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  • Summer '14
  • Marketing, Competitive intelligence, Region, Capacity utilization, Regional geography

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