Buy Us is a big box retailer who is in direct competition with Walmart and Target.Buy Us initially tried to respond to Walmart by cutting its prices and reducing costs.Walmart has greater buying power and a more efficient supply chain,therefore Buy Us was not able to compete on costs.The company then tried to differentiate itself by signing a celebrity to create an in-house line of clothing.However,Target has a celebrity clothing line that has a more differentiated appeal.The economic value created by Buy Us is currently less than Target and Walmart.It can be said that:
A) Buy Us is successful in creating an integration strategy positioned between Walmart and Target.
B) Buy Us is "stuck in the middle" and has a competitive disadvantage.
C) Buy Us is still creating an integration strategy positioned between Walmart and Target and is on the right track. It should continue this business strategy.
D) Buy Us is "stuck in the middle" and has a competitive advantage.
Correct Answer:
Verified
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