CutRite Scissors: Developing a Competitive Strategy
What strategy should be implemented by CutRite Scissors to achieve a competitive advantage?
A) Reduce the quality of materials used in CutRite scissors to bring unit costs down to $1, then sell the scissors for $12.
B) Continue to produce CutRite scissors for $3 but set the price at $10.
C) Offer a buy-one-get-one-free sale on CutRite scissors.
D) Market CutRite scissors as a higher-quality alternative and sell them for $15.
Answer:
The answer is D) Market CutRite scissors as a higher-quality alternative and sell them for $15.
As the strategic manager of CutRite Scissors, the best strategy to achieve a competitive advantage is to market the scissors as a higher-quality alternative and sell them for $15. By positioning the product as superior in quality to the competitor's scissors, customers may be willing to pay a higher price for the perceived value they offer.
Provision of quality products gives a company a competitive advantage in the market. It can differentiate the brand from competitors and attract customers who are willing to pay more for better quality. By emphasizing the superior comfort of the handle and other quality features of CutRite scissors, the company can justify the higher price point of $15.