A company's competitive advantage is product differentiation. The company has multiple new products with unique features targeted to various customer groups. It plans to sell its products via retail channels and online. One of the activities the company should focus on first when determining inventory levels for each product is:

Question

Quizplus · Accepted Answer

Before determining inventory levels for each product, the company should first identify and document each market segment's need to understand the demand for each product in different markets. This will help the company make informed decisions about inventory levels for each product and ensure that it has the right inventory mix to meet the needs of different customer groups. Planning equivalent inventory levels for each product (B), setting price points for each product (C), and determining inventory levels at retail outlets (D) are all important activities, but they should only be done after the company has completed market analysis and identified customer needs.

A Company's Competitive Advantage Is Product Differentiation