A watch manufacturing company has priced its goods at a rate which is higher than what other companies offer. The watches made by this company do not have any stand out feature to differentiate itself from the other companies or justify its high price. This company would be considered as a _____ firm.
A) rack jobber
B) stuck in the middle
C) paste-up
D) runner
E) preretailing

Question

Quizplus · Accepted Answer

A firm that is "stuck in the middle" lacks a clear competitive strategy, such as cost leadership or differentiation, and thus struggles to justify its pricing or stand out in the market.

A Watch Manufacturing Company Has Priced Its Goods at a Rate