Question

The Yee-Haw Pickle Company in Park City, Utah, has grown in four years to supply 600 retailers nationally. The products include pickles and pickled green beans. Yee-Haw’s products are unique for their unusual ingredients, such as wildflower honey used in some of their products. The owners of Yee-Haw are considering how to make the company grow. A large discount store chain with 500 stores wants to add the Yee-Haw product.

1. What type of strategy, cost leadership or differentiation, should Yee-Haw use?
The strategy is differentiation due to the use of unique ingredients
The strategy is differentiation due to the considering of selling through a large discount chain.
The strategy is leadership due to the desire to grow sales and look for new market opportunities.
The strategy is leadership due to the potential to sell to a large discount chain.
2. Should the owners accept the offer of the large discount chain?
No, the sale of its differentiated, premium product in discount stores would undermine the differentiated competitive advantage that the company now
Yes, the sale of its products through a large discount change will increase volume and therefore profits will increase.
3. What are the key factors you considered in answering requirements 1 and 2? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
Having the company associated with a discounter would likely damage their premium brand. unanswered
The strategy of differentiation due to the use of unique ingredients is the basis of its brand.unanswered
Having the company associated with a discounter would likely enhance their premium brand.
(pick from those options) #3 can be more than 1

Answer 1

The key factors considered in answering requirements 1 and 2 are:

The strategy of differentiation based on unique ingredients, which is the basis of Yee-Haw's brand.

The potential risk of undermining the company's competitive advantage by selling its differentiated, premium product in discount stores.

The potential benefits of increasing sales volume and profits by selling to a large discount chain.

Therefore, the correct answers are:

The strategy is differentiation due to the use of unique ingredients and the consideration of selling through a large discount chain.

It depends on the potential risk of damaging the company's brand versus the potential benefits of increased sales and profits.