Question

Nick, the R&D department manager of Precise, a manufacturer of high-quality watches for over 125 years, was told in a management meeting that the company's biggest competitor, Accurate Watches, is introducing a low-cost, yet attractive line of watches that will be sold in Walmart stores. As a result, the top management of Precise is pressuring Nick to lower the production costs on existing products and also to develop a line of watches that can be manufactured inexpensively to be marketed to a wider variety of customers at a much lower price. This is an example of a quality-leadership strategy.

True/False

Answer 1

The scenario represents a quality-leadership strategy in response to the competitor's low-cost line of watches.

Step-by-step explanation:

True.

This scenario describes a quality-leadership strategy. The management of Precise is responding to the introduction of a low-cost line of watches by their competitor by focusing on lowering production costs and developing a line of watches that can be manufactured inexpensively to be sold at a lower price. This strategy aims to compete with Accurate Watches by offering a wider variety of customers a more affordable option while maintaining the quality associated with Precise watches.