I’m stuck on a Accounting question and need an explanation.
The Yee-Haw Pickle Company in Park City, Utah, has grown in four years to supply 600 retailers nationally. The products include pickles and pickled green beans. Yee-Haw’s products are unique for their unusual ingredients, such as wildflower honey used in some of their products. The owners of Yee-Haw are considering how to make the company grow. A large discount store chain with 500 stores wants to add the Yee-Haw product. What type of strategy, cost leadership or differentiation, should Yee-Haw use?
| The strategy is differentiation due to the use of unique ingredients | |
| The strategy is differentiation due to the considering of selling through a large discount chain. | |
| The strategy is leadership due to the desire to grow sales and look for new market opportunities. | |
| The strategy is leadership due to the potential to sell to a large discount chain. |
2. Should the owners accept the offer of the large discount chain?
| No, the sale of its differentiated, premium product in discount stores would undermine the differentiated competitive advantage that the company now | |
| Yes, the sale of its products through a large discount change will increase volume and therefore profits will increase. |
3. What are the key factors you considered in answering requirements 1 and 2? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)
| Having the company associated with a discounter would likely damage their premium brand. | |
| The strategy of differentiation due to the use of unique ingredients is the basis of its brand. | |
| Having the company associated with a discounter would likely enhance their premium brand. |
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