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Sugar Flakes and Cinnamon Texas Toast both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a box of cereal is
Sugar Flakes and Cinnamon Texas Toast both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their production costs any further. How can one company achieve a competitive advantage over the other?
Increase the number of stock market shares available to investors. | ||
Raise prices above the current reservation price. | ||
Increase total perceived consumer benefits through differentiation. | ||
Lower prices to the break-even price. |
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