Question
A retail store specializing in sporting goods and athletic wear has been operating successfully in a mostly abandoned strip mall for many years. Recently, a
A retail store specializing in sporting goods and athletic wear has been operating successfully in a mostly abandoned strip mall for many years. Recently, a women's boutique rented one of the empty shops in the strip mall. The owner of the sporting goods store is concerned the store will take some of his market share. The owner of the sporting goods store spends more resources on advertising and puts more items on clearance to attract customers. What are the most likely circumstances resulting from the actions of the sporting goods store owner?
He will see an obvious return on his advertising investment
He will be in competition with the women's boutique
He wasted money--they are not in the same strategic group as the women's boutique
He will make more sales and receive a higher profit because of their clearance event
He will not be able to compete with the women's boutique because women's clothes are in higher demand than athleisure
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