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lowest price in target market while maintaining a competitive contribution margin

  1. Review the Inquirer to determine Digby’s current strategy. How will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Digby would be most likely to pursue.
    Select: 5
    Seek high automation levels
    Seek the lowest price in their target market while maintaining a competitive contribution margin
    Seek excellent product designs, high awareness, and high accessibility
    Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand
    Increase demand through TQM initiatives
    Seek high plant utilization, even if it risks occasional small stockouts
    Reduce cost of goods through TQM initiatives
    Add additional products
    Offer attractive credit terms
    Reduce labor costs through training and recruitment
  2. Rank the following companies from high to low cumulative profit, (in descending order, 1=highest, 4=lowest).
    Rank in order from 1 to 4
    Digby
    Andrews
    Baldwin
    Chester
  3. Which description best fits Baldwin in your industry? For clarity:
  • A differentiator competes through good designs, high awareness, and easy accessibility.
  • A cost leader competes on price by reducing costs and passing the savings to customers.
  • A broad player competes in all parts of the market.
  • A niche player competes in selected parts of the market.