Question

Potomac Industries is a manufacturer of high-definition televisions. The industry has gone through a period of rapid growth and expansion, and has started to experience a decline in the rate of growth. Several smaller firms have been bought out by larger competitors, and competition for market share is intensifying. Which of the following strategies is most likely to give Potomac a competitive advantage?

A. Imitate the features of the highest-selling television on the market.
B. Implement process innovations that lower per-unit costs.
C. Increase spending on marketing and attempt to acquire a high-profile celebrity spokesperson.
D. Introduce product innovations that differentiate Potomac televisions from the competition.

Answer 1

Option B. Implement process innovations that lower per unit costs

Step-by-step explanation:

The reason is that the controlling cost will give cost advantage over the competitors and will let the company to compete at a better platform making greater number of sales and driving maximum sales which will also give economies of scale. Economies of scale is the benefits of additional costs savings that comes with the additional manufacturing of the product which means that greater the manufacturing the greater would be the savings of costs. So economies of scales give competitive advantage over the rivals so the correct option is B.