An Elite Fashion Manufacturer Distributes Apparel Products in Retail Outlets

question 39

Multiple Choice

An elite fashion manufacturer distributes apparel products in retail outlets worldwide. The company chooses to forego coordinating physical distribution functions with other firms in the distribution channel. Which of the following is most likely to occur as a result?

• A) A competitive advantage for the manufacturing firm
• B) Lower product delivery costs
• C) Greater harmony across the supply chain
• D) Significant gains in global market share
• E) Discord concerning issues of physical distribution

---

Definitions:

Resold

Refers to an item being sold again after its initial purchase.

Monopolist's Profits

The excess earnings a monopolist achieves, derived from the difference between its revenues and costs, due to its unique market power and lack of competition.

Demand Segmentation

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behaviors.

Bubbles

Economic cycles characterized by rapid expansion followed by a contraction, often driven by speculative or unsustainable growth.