A cost leader competes on price by reducing costs and passing the savings to customers.

Crimp’s product manager continues to perform well in the market. However, a competing product is coming on strong and is looking to take over as the market share leader in the segment. Without sacrificing contribution margin, what can the Crimp product manager do in order to improve upon the buying criteria, and thus potentially increase demand?
Select: 1
Increase MTBF by 2000
Reposition Crimp to make it even smaller and higher performing
Lower the selling price since it is the second most important buying criteria
Increase the promotion budget to gain greater awareness

Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the Cake product manager wishes to achieve a product contribution margin of 35%. Given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?
Select: 1

According to information found on the production analysis page of the Inquirer, Digby sold 1126 units of Dome in the current year. Assuming that Dome maintains a constant market share, all the units of Dome are sold in the Nano market segment and the growth rate remains constant, how many years will it be before Dome will not be able to meet future demand unless the company adds production capacity? Exclude any existing inventory.
Select: 1
3 year(s)
2 year(s)
1 year(s)
4 year(s)

Which description best fits Baldwin? For clarity:

– A differentiator competes through good designs, high awareness, and easy accessibility.
– A cost leader competes on price by reducing costs and passing the savings to customers.
– A broad player competes in all parts of the market.
– A niche player competes in selected parts of the market.

Which of these four statements best describes this competitor?
Select: 1
Baldwin is a broad differentiator
Baldwin is a niche cost leader
Baldwin is a broad cost leader
Baldwin is a niche differentiator