Given the following data from a Comparative Competitive Efforts page in the CIR

Given the following data from a Comparative Competitive Efforts page in the CIR:

WHOLESALE SEGMENT	Your Company	Industry Average	Your Company vs. Ind. Avg.
Wholesale Price ($ per pair)	$59.50	$53.83	+10.5%
S/QRating (1 to 10 stars)	8.6	6.3	+36.5%
Model Availability	499	300	+66.5%
Brand Advertising (S000s)	16,500	14,350	+15.0%
Rebate Offer ($ per pair)	3.00	3.40	-11.8%
Delivery Time (weeks)	4 wks	2.8 wks	+42.9%
Retailer Support ($ per outlet)	4,500	4,675	-3.7%
Retail Outlets	2,272	1,538	+47.7%
Celebrity Appeal	140	111	+26.1%
Brand Reputation (prior-year average)	87	76	+14.5%
Pairs Demanded	3,129	2,413	+29.7%
Gained/Lost (due to stockouts)	+32	0
Pairs Sold (000s)	3,161	2,413	+31.0%
Market Share (%)	13.1%	10.0%	+3.1pts

Based on the above data for your company, which of the following statements is false?

Your company's branded sales volume and market share in the Wholesale segment were positively impacted by your company's wholesale price and delivery time.
Your company's percentage competitive advantages and disadvantages on the 10 competitive factors affecting Wholesale sales and market share resulted in a net overall competitive advantage of a size sufficient to produce an above-average 13.1% market share.
Your company had a very stable S/Q-based competitive advantage of 36.5%, along with an even bigger percentage competitive advantage on number of retail outlets stocking and merchandising your company's branded footwear.
Your company's branded sales volume and market share in the Wholesale segment were negatively impacted by your company's rebate offer and retailer support expenditures.
Your company's pairs sold were 32,000 pairs higher than they would otherwise have been because one or more other companies in the region did not have sufficient branded footwear inventories to fill all orders from retailers, thus causing some retailers in the region to place orders with your company.

Expert Solution

Since it is a radio button, the given problem have 1 false answer.

If we read 1 to 4 options, the inference could be validated from the table. But no such information is given for option no 5 " Your company's pairs sold were 32,000 pairs....with your company" making it false and hence our Ans.

Option1. Wholesale Price and Delivery Time is above the industry average (correct)

Option 2. Market share is 13.1% above average and is an amalgamation effect of all the factors.(correct)

Option 3. S/Q Rating advantage of 36.5% as compared to Industry avg and above avg of retail outlets and brand reputation (correct)

Option4. Rebate offer (-11.8%) and Retail Support (-3.8%) are negatively impacted. (correct)

Option 5. Nothing as such is mentioned and cannot be inferred. (ANS)

jeff jeffy answered 2 years ago

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