MINI-CASE
Aster Inc.is an American firm that manufactures and markets cell phones for sale in discount stores and other retail settings.The firm also sells cell phone accessories.Aster Inc.conducted an analysis of its competitive advantage for one of its product-markets and conducted research to learn the following information:

-Mini-Case Question.If differentiation advantage and cost advantage are both rated at 40% of total importance and marketing advantage is weighted much lower at 20%,what is Aster Inc.'s competitive position index for this product-market?

Question

MINI-CASE
Aster Inc.is an American firm that manufactures and markets cell phones for sale in discount stores and other retail settings.The firm also sells cell phone accessories.Aster Inc.conducted an analysis of its competitive advantage for one of its product-markets and conducted research to learn the following information:
 
-Mini-Case Question.If differentiation advantage and cost advantage are both rated at 40% of total importance and marketing advantage is weighted much lower at 20%,what is Aster Inc.'s competitive position index for this product-market?

Quizplus · Accepted Answer

To calculate the competitive position index (CPI), we use the formula:

CPI = (Differentiation Advantage x Weight) + (Cost Advantage x Weight) + (Marketing Advantage x Weight)

Plugging in the given values, we get:

CPI = (0.4 x 75) + (0.4 x 70) + (0.2 x 60)
CPI = 30 + 28 + 12
CPI = 70

Therefore, Aster Inc.'s competitive position index for this product-market is 70, which is closest to option D (54.8).

MINI-CASE Aster Inc.is an American Firm That Manufactures and Markets Cell