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Question 5 Which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sold is false?
1, Companies whose delivery times are in a region are shorter than the all-company average have a competitive disadvantage in attracting footwear retailers to stock their brand.
2, A company’s sales/market share outcomes in a region’s Wholesale Segment are positively impacted when its number of retail outlets is above the regional average and are negatively impacted when its number of retail outlets is below the regional average.
3, The bigger is a company’s model-based competitive advantage in a region, the bigger the positive impact on its pairs sold and market share in that region.
4, A company’s expenditures for brand advertising in each geographic region is judged to be competitively strong when its annual brand advertising expenditures exceed the all- company regional average.
5, A company’s pairs sold and market share outcomes in a region are negatively impacted when its brand reputation is below the regional average, and this negative impact becomes progressively larger as the size of the percentage below the regional average increases.
♦ Relevant knowledge
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There are many motives that firms pursue on the market. There are profit-oriented businesses whose goal is to increase the profits they earn. So, they will implement actions that align with their purpose. For instance the company that is profit-maximizing will take measures such as creating competitive prices to draw customers so that they can sell more of its merchandise.
1 Answer