Unicorn Toys faces stiff competition from Playtime Inc., a rival firm with which

Question

Unicorn Toys faces stiff competition from Playtime Inc., a rival firm with which Unicorn Toys has achieved differentiation parity. Both firms have invested in state-of-the art production facilities and have similar learning curves of 85 percent. Assuming neither firm can reduce the cost of its input factors, how can Unicorn Toys achieve a competitive advantage as a cost leader? Multiple Choice Reduce the manufacturing staff by half to save on labor costs. Increase spending on product features. Have a cumulative output that is greater than Playtime Inc.'s Eliminate several features that customers value to cut costs.

Explanation / Answer

Unicorn toys can achieve competitive advantage by having a cumulative output greater than that of Playtime Inc.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.