Question
WORD LIMIT (250 WORDS) Arabella Jones, CEO of Violet Fashion (VF), is considering a special offer to manufacture a new line of womens clothing for
WORD LIMIT (250 WORDS) Arabella Jones, CEO of Violet Fashion (VF), is considering a special offer to manufacture a new line of womens clothing for a large department store chain. VF has specialized in designer womens clothing sold in small, upscale retail clothing stores throughout the country. To protect the very elite brand image, VF has not sold clothing to the large department stores. The current offer, however, might be too good to turn down. The department store is willing to commit to a large order, which would be very profitable to VF, and the order would be renewed automatically for two more years, presumably to continue after that point. Required: 1. Regardless of the current offer, identify and briefly describe the competitive strategy for Violet Fashion (cost leadership or differentiation) and explain your choice (2 marks) 2. Identify four disadvantages to Violet Fashion of accepting the current offer (4 marks)
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