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Mini-Case Since He Was Five Years Old, Rhett Tenna Struggled with with Poor

question 239

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Mini-Case
Since he was five years old, Rhett Tenna struggled with poor eyesight. He suffered through all the names that went along with wearing eyeglasses for most of his young life. Rhett eventually switched from traditional eyeglasses to contacts, but he always wondered why glasses were considered to be "ugly" and not fashionable. After graduation from college, Rhett set out on a lifelong goal: to make eyewear synonymous with high fashion. He opened a specialty store called "The Eyes Have It." His marketing plan was to remove the social stigma of wearing glasses, and replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett's plan met with resounding success. Today, "The Eyes Have It" has grown from that single outlet to a medium-sized company with dozens of stores located in six states, and a manufacturing plant that turns out designer frames.
A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study indicated that the U.S. market is just about saturated and growth of "The Eyes Have It" stores will be very limited. The audit concerned Rhett until he recognized an untapped market existed overseas. If people all over the world have the same problem, the global market opportunities are fantastic! All in favor of going global say: "The Eyes Have It"!
-Next year, in order to cut both time and cost in getting new styles to global markets, Rhett plans to _________________ a few lines. Rhett will send his designs to manufacturers in Saipan, Bangladesh, and Turkey who will produce the eyeglasses in facilities in their respective countries. This will not only reduce the cost of labor, it will help Rhett reach regional markets in a timely manner.

Definitions:

Perfect Competition

A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit.

Product Differentiation

A marketing strategy that businesses use to distinguish their product from similar offerings on the market.

Perfect Competition

A market structure characterized by many firms, freedom of entry and exit, homogeneous products, and perfect knowledge, leading to price taking behavior.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, leading to competition based on quality, price, and marketing.