Toy sales have declined by $10$ percent each year, forcing many retailers to exit the industry. To eliminate its remaining competition, Terrific Toys sells all of its product at a loss and relies on its significant cash holdings to cover costs until its competition is forced to exit the industry. Is this an example of a successful strategy? Why or why not?

Multiple Choice

Yes. Any strategy that forces competition from the market is by definition successful.

No$.$ Bargain has failed to create value for its customers.

No$.$ Bargain's strategy and competitive advantage are unsustainable.