Facing Stiff Competition in the E-Reader Market, Sumac Industries Wants

question 66

Multiple Choice

Facing stiff competition in the e-reader market, Sumac Industries wants to protect its competitive advantage by increasing the perceived value of its reader. Sumac's best strategy to accomplish this would be to

• A) increase the cost of production to add innovative new features.
• B) highlight the number of celebrities who use Sumac e-readers.
• C) lower the retail price of its e-reader to attract new customers.
• D) try to imitate some of the features found in competing products.

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Definitions:

Service Need

A requirement for assistance or support, typically in a community or among individuals, that organizations aim to address.

Philanthropic Foundations

Nonprofit organizations that primarily distribute or support charitable activities through the funding of grants, scholarships, or direct support to other nonprofits.

Operational Costs

Expenses associated with the day-to-day functioning of a business or organization.

Capacity

The maximum amount that something can contain or the ability of individuals or organizations to achieve their objectives.