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List some qualitiative factors such as opportunities and risks for DVDs product. CML stores could accommodate adding DVDs as a product line without affecting the
List some qualitiative factors such as opportunities and risks for DVDs product.
CML stores could accommodate adding DVDs as a product line without affecting the selling space of other products by using mobile racks to display them at the edge of the open mall side of the stores during store hours. This product line would appeal more to youths and young adults than to the more mature customers who currently shop at CML stores. DVDs cannot be returned to the supplier. To discourage misuse of the DVDs by customers (e.g. purchase, view, and then return), Tamar Shah suggests that a policy of "all DVD sales are final" be adopted. Mantha determined that the average initial investment per store would be approximately $1,000 for inventory and $500 for a mobile rack, annual revenues of $6,000 to $7,000 per store from DVD sales could be generated, and the gross profit margin would be 50% of sales. However, there is a high risk of theft for this type of product, which could result in having to increase security at the storesStep by Step Solution
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