Discuss how a business unit may avoid problems of cannibalism among competing brands.
What will be an ideal response?
A major responsibility when offering multiple brands is to avoid competitive threats from one brand to another, i.e., cannibalism. To avoid the problems of cannibalism, several steps must be stressed. The market should be carefully segmented, and the brand should be positioned through design and promotion to serve the chosen segment. The apparent difference in cannibalism rates shows that cost structure, degree of market maturity, and the competitive appeal of alternative offerings will affect cannibalism of sales. Finally, the degree of cannibalism must be weighed against the vulnerability of an existing brand to a competitor’s entry through a possible open spot in the market.
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A) difference B) presence C) inflection D) parity E) conflict
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A) static B) supply-driven C) asymmetrical D) elastic E) inelastic
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ASC 740 applies a two-step process in determining if an uncertain tax benefit should be recognized.
Answer the following statement true (T) or false (F)