Suave and Debonair, Inc., a chain of men's clothing stores, is facing increased competition. CEO Pablo Espinosa has tried several tactics-all unsuccessful-to influence his business environment: slashing prices, offering seasonal promotions to smooth out sales, contracting with wholesalers in advance of seasonal rushes to prevent inventory depletion, and appointing the president of the chamber of commerce in his state to his board of directors. Now, Pablo is considering a more significant change to his business-perhaps acquiring a formal wear/tuxedo rental and retail business or a boutique Western wear store to add to his business portfolio. Pablo is now considering ________ as a tactic to manage the business environment.

Question

Quizplus · Accepted Answer

Domain selection involves changing the boundaries of the organization's domain by acquiring businesses that complement its existing line of products or services. In this case, acquiring a formal wear/tuxedo rental or a boutique Western wear store would expand Suave and Debonair's offerings and potentially reduce the impact of competition. This tactic is more strategic than the other options listed and is likely to have a more long-term impact.