Addams Coaches Inc. is a bus line with service to several major cities. It has several competitors that each offer service to one or two cities, and based on its current outlays, it cannot match or beat those competitors on price. Because of long-term contracts and an increase in the cost of gasoline, it is not possible to reduce expenditures at this time. Which of these strategies should Addams pursue instead?
A. Close the business until the cost of gas decreases.
B. Pursue a differentiated strategy.
C. Compete based on inter-group rivalry, not intra-group rivalry.
D. Create a strategic group through mergers.
Answer: B
You might also like to view...
The following list contains several items that appear on an income statement. 1 . Other revenue and expenses 5 . Net Income 2 . Income before taxes 6 . Operating revenues 3 . Income taxes 7 . Income from operations 4 . Operating expenses Select the choice that lists the items in the order they would appear on a multi-step income statement
a. 6, 1, 7, 4, 2, 3, 5 b. 7, 6, 1, 4, 2, 3, 5 c. 6, 4, 7, 1, 2, 3, 5 d. 6, 7, 4, 1, 2, 3, 5
Which of the following is defined as a performance goal that can be met by adding up individual contributions?
A. synergy B. collective effect C. additive task D. reciprocal interdependence
The National Tax Accountants Professional Association (TAPA) has recommended that its members charge a minimum of $25 per hour for completing tax forms. This recommendation is probably:
A) a per se price-fixing violation of the Sherman Act. B) not a violation of the Sherman Act, because it has been made by a professional association. C) not a violation of the Sherman Act, because a fee is different from a price. D) subject to the rule of reason.
The relative lack of success in bringing cybercriminals to justice has led to an increase in their numbers, boldness, and the global scale of their operations
Indicate whether the statement is true or false.