Excel Computers Produces the World's Best Computers

question 26

Multiple Choice

Excel Computers produces the world's best computers.It has a sophisticated R&D division that develops computers that have the latest features that consumers can enjoy.Quality standards at Excel Computers are strict and the company uses only the best raw materials to assemble each computer it produces.In its attempts to source the best raw materials,the company has associated with 32 suppliers spread across 14 nations.Computer chips,an integral part of any computer,are procured exclusively from a supplier in China.Excel Computers has obtained an approval for this no-bid contract from the government and secured the supply from any changes caused by competing suppliers.Excel Computers has resorted to _____ with regard to its supply of computer chips.

• A) benchmarking
• B) test marketing
• C) competitive bidding
• D) sole sourcing

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a significant portion of the market share, leading to limited competition and often collaborative behavior.

Conditions of Entry

The factors that determine the ease or difficulty with which new firms can enter an industry and compete with existing firms.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and very easy entry and exit conditions, leading to price-taking behavior.

Advertising

Advertising is a marketing communication strategy used to promote or sell a product, service, or idea through various media channels.