Hardware Chains Such as Ace and True Value Are Losing

question 34

Multiple Choice

Hardware chains such as Ace and True Value are losing market share to rivals such as Lowe's and Home Depot in spite of them using a focus strategy.Why?

• A) Achieving parity on costs for specialty retailers is difficult.
• B) They have too broad a product line.
• C) They have equivalent purchasing power as the national chains.
• D) Their costs are the same as those of the national chains.

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Definitions:

High Wages

Compensation that is significantly above the average pay rate for a particular job or industry, often reflecting high skill levels, performance, or the critical nature of the job.

Corruption

The use of illegal practices to further one’s business interests.

Illegal Practices

Activities that are prohibited by law and can include a wide range of offenses from fraud to environmental violations.

Business Interests

Refers to the stakes or investments that an individual or company holds in a particular sector or business to gain financial or strategic benefits.