Question

Which of the following sets of actions are unlikely to help a company achieve a differentiation based competitive advantage over some/many of its camera rivals when it comes to assembling and marketing multi-features cameras?

A) actions to reduce the companys warranty costs for multi featured cameras by cutting its warranty period to 90 days in all four geographical regions and actions to price its multi featured cameras below the industry average in all four geographical regions

B)Spending the highest amount of tech support of any company in the industry in all four geographical regions, and offering 500 models/styles to buyers in each geographical region

C)Actions to offer a 20% discount on all quarterly promotions in all geographical regions, spending above average amounts on quarterly tech support in all four geographical regions, spending above average amounts on quarterly advertising in all four regions and offering buyers a multi featured camera with a 4-5 star p/q rating

D) Actions to achieve an P/Q rating of 4 stars or higher for its multi featured cameras' actions to spend above average amounts for advertising in all four regions, and actions to offer buyers a choice of 5 models in all four geographical regions

E) sending the highest amount for quarterly advertising for any company in the industry in all four regions and having 3 quarterly sales promotions with a length of 3 weeks per promotion in a ll 4 regions

Answer 1

Option A likely will not help with differentiation-based competitive advantage because it focuses on cost reduction over unique product features or quality, which are central to differentiation strategies. Understanding comparative advantage, as Germany has with video cameras, aids in optimizing production and trade decisions.

Step-by-step explanation:

The actions described in option A are unlikely to help a company achieve a differentiation based competitive advantage when assembling and marketing multi-feature cameras. This is because by cutting warranty periods and pricing cameras below the industry average, the company is focusing on cost leadership rather than product differentiation. Differentiation strategies typically involve actions that make a product stand out as unique or higher quality compared to competitors, such as offering extensive tech support (as in option B), having high product quality ratings (as in option C and D), or intensive marketing and promotional efforts (as seen in option E). Additionally, the principle of comparative advantage is important to understand when discussing production and trade. Comparative advantage occurs when a country or firm can produce a particular good at a lower opportunity cost than others. For example, producing a video camera in Germany is more efficient compared to Poland, as the opportunity cost in terms of foregone television sets is lower, making video cameras Germany's comparative advantage.