Question

1. The X-L Corporation is preparing to target the largest market segment in its industry for entry. The firm is MOST likely to be successful if?

		its product is technologically complex
		it backs its entry with large advertising expenditures
		it is new to the industry
		it has a unique, competitive advantage that cannot be easily copied.
		it enters as the "low-price" alternative

Answer 1

The answer is D. It has a unique, competitive advantage that cannot be easily copied.

Competitive advantage is the position of a company which allows it outperform its competitors.

An organisation can achieve a competitive advantage through cost leadership or differentiation or both.

As this competitive advantage cannot be copied easily, XL corporation will continue to outperform its competitors and get the largest market segment and make it most successful.

Remaining 4 options are incorrect:

If it is technological complex then the user won't be happy with the usage of it, it will most likely make it unsuccessful.

Huge advertising expenditure will keep unnecessary pressure on the corporation and it doesn't guarantee inflow of cash, it will most likely make it unsuccessful.

New to the industry means resistance from the customer to buy from an unknown seller.

Low price alternative can be provided by other corporations also & it's not given an edge for a LARGE MARKET SHARE.