Question
Adam has decided to purchase a sewing machine. He has two choices: Poppy and Iris. The sewing machines sold by Poppy and Iris offer the
Adam has decided to purchase a sewing machine. He has two choices: Poppy and Iris. The sewing machines sold by Poppy and Iris offer the same features (work space, stitch quality and quietness, automatic end-of-stich features, easy to learn, lightning, and so on). Both are mail-order companies with good reputations. Both sewing machines sell for the same price. To help him make a decision, Adam gets more information on the two machines from the respective company websites. He discovers that the cost of operating and maintaining Poppy over a two-year period is estimated to be $400. For Iris, the operating and maintenance cost is $650. The sales information for Poppy emphasized the lower operating and maintenance costs. While the website for Iris, however, emphasized the service reputation of the product and the faster delivery time (Iris can be purchased and delivered one week sooner than Poppy). Based on all the available information, Adam has decided to buy Iris. Required: 1. What are the strategic positions of the two companies (Poppy and Iris) and how do they differ? (2 marks) (100 words)
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