Review the Inquirer to determine Chester’s current strategy. Where will they seek a competitive advantage? From the following list, select the top five sources of competitive advantage that Chester would be most likely to pursue. Select 5:
a) Increase demand through TQM initiatives
b) Offer attractive credit terms
c) Seek excellent product designs, high awareness, and high accessibility
d) Add additional products
e) Seek the lowest price in their target market while maintaining a competitive contribution margin
f) Accept lower plant utilization and higher capacities to insure sufficient capacity is available to meet demand
g) Reduce labor costs through training and recruitment
h) Seek high automation levels
i) Seek high plant utilization, even if it risks occasional small stockouts
j) Reduce cost of goods through TQM initiatives

a) Increase demand through TQM initiatives

b) Offer attractive credit terms

c) Seek excellent product designs, high awareness, and high accessibility

e) Seek the lowest price in their target market while maintaining a competitive contribution margin

g) Reduce labor costs through training and recruitment

Explanation:

Chester by pursuing the top five targets listed above would Have a competitive advantage among it's competitors. First their total quality management strategy(TQM) would increase customer satisfaction and spiral their demand growth. Secondly attractive credit terms would increase demand by encouraging customers that require credit facilities for their purchases. Excellent product designs and more awareness would increase product quality while also bring more awareness to the business. Reducing price would also increase demand and since they'd be able to keep a competitive contribution margin they would be able to stay ahead in the market. Lastly reduction in labour costs will have a ripple effect on the whole business as costs will be reduced and cost of goods will be reduced to ensure lower prices and high demand

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