Funsters Inc., the largest toy company in Canada, sells its most popular doll for $35. It has just learned that its leading competitor Toysorama is mass producing an excellent copy and plans to flood the market with their $10 doll in 6 weeks. What should Funsters do?

Question

Quizplus · Accepted Answer

Funsters Inc. should increase the supply of their doll now before the competitor's doll hits the market. By doing this, they can capture the market share before the cheaper imitation is available. It will also help them to maintain their brand image and value.