case 10 - a whole variety of products that are different....

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Bus 173 B Wedn Case 10 1. An industry with low profit margin is the video game industry. Video game systems ( Consoles) are very costly to make. Companies like Microsoft and Sony can only charge a certain amount of money without taking a hit to their sales. Therefore, they have to sell a lot of systems ( high turn over ratio). They make up for the low profit by selling accessories which have a high profit margin and an average turn over ratio. 2. A product differentiator example would be apple computers. They offer
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Unformatted text preview: a whole variety of products that are different. There best example would be their Ipods. The most popular cost leader would be walmart. They have high turnover and low margins. 3. Good outsourcing examples would be the clothing industry. Nearly all our clothes are made in different countries in order to take advantage of cheap labor. Oil companies are Vertical integrators. Exxonmobile is a good example, they are active through the whole supply chain, from locating the oil, to distributing it....
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This note was uploaded on 09/08/2010 for the course BUS 173B at San Jose State University .

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