Question

The Bright Bulb light bulb company produces a line of LED bulbs that customers consider very similar to competitors' LED bulbs. Which of the following conditions must be true for Bright Bulb to have a competitive advantage?

A) Bright Bulb's LED bulbs are priced higher than competitors' bulbs.
B) Bright Bulb focuses solely on cost-cutting measures to maximize profits.
C) Bright Bulb's LED bulbs have the same features and quality as competitors' bulbs.
D) Bright Bulb engages in aggressive marketing tactics to undermine competitors.

Answer 1

Bright Bulb needs to differentiate its LED bulbs or provide added value to consumers to gain a competitive advantage, beyond just pricing, cost-cutting, or aggressive marketing.

Step-by-step explanation:

For Bright Bulb to have a competitive advantage, it would require a strategy that differentiates its LED bulbs from competitors or offers additional value that customers recognize.

Given that the bulbs are considered very similar to those of competitors, a competitive advantage could be achieved through innovative features, superior customer service, efficiencies that allow for lower prices, or other factors that customers value and are willing to pay for. None of the options presented - higher pricing, sole focus on cost-cutting, identical features, or aggressive marketing - inherently provides a competitive advantage unless they result in perceived added value by customers.