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Excel Computers Produces the World's Best Computers

question 26

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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.


Definitions:

Market Shares

The percentage of total sales or total revenue generated by a company in a particular market.

Price Leadership

Price leadership occurs when one leading company in an industry sets the price for its products, and other companies in the industry follow suit, often seen in oligopolistic markets.

Product Differentiation

Product Differentiation is the process by which companies distinguish their products from those of competitors on aspects like quality, design, or brand.

Price Leadership

A market situation where one leading firm sets the price of goods or services, and other firms in the industry follow suit, typically seen in oligopolies.

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