Question

Which one of the following constitutes a valid reason/condition for a company to consider shifting away from pursuit of a differentiation strategy keyed to assembling and selling top-quality entry-level cameras at premium prices?

A. When one or more rival companies are spending above-average amounts on advertising in all 4 geographic regions--trying to overcome the advertising advantage they have would be virtually impossible.
B.When there are so many companies trying to sell top-quality, premium-priced entry-level cameras that it is very difficult for any one company to capture an appealingly profitable market share.
C. When selling a large volume of entry-level cameras is much more important to achieving a high image rating than is producing and marketing entry-level cameras having a high P/Q rating (4-stars and above).
D.When a big fraction of companies in the industry are having more than 1 sales promotion campaign each quarter.
E.When the volume of sales that a high-end differentiator can achieve is too small to enable the company to increase the warranty period beyond 90 days.

Answer 1

Step-by-step explanation:

B. When there are so many companies trying to sell top-quality, premium-priced entry-level cameras that it is very difficult for any one company to capture an appealingly profitable market share.

The valid reason/condition for a company to consider shifting away from the pursuit of a differentiation strategy keyed to assembling and selling top-quality entry-level cameras at premium prices is option B - "When there are so many companies trying to sell top-quality, premium-priced entry-level cameras that it is very difficult for any one company to capture an appealingly profitable market share."

If too many competitors offer similar products in the market, it becomes challenging for a company to maintain a high market share and charge a premium price. In such a situation, companies may need to consider changing their strategy to remain competitive and profitable. This may involve offering a different product or service, targeting a different market segment, or adopting a different pricing strategy.