In D'Aveni's model of cost-quality competition implies:
A)an initial price war leads directly to segment producers
B)new levels of value result directly from differentiation on quality
C)segment competition leads directly to a fresh price war
D)emergence of full-line producers covering all segments

Question

Quizplus · Accepted Answer

D'Aveni's model of cost-quality competition suggests that the emergence of full-line producers covering all segments is the result of intense competition on both cost and quality. As firms try to differentiate themselves on quality, they end up offering a wider range of products to appeal to different customer segments. Over time, this can lead to the emergence of full-line producers who have a presence in all segments of the market.

In D'Aveni's Model of Cost-Quality Competition Implies