Kim Davidovic owns and operates a small retail store selling the outdoor clothing of a Canadian manufacturer to a predominately university-student market. Lately, a large department store outside of town has started selling similar but lower-priced clothing manufactured in China, Thailand, and Bangladesh. Kim believes she is starting to lose business to this store. Assume you are part of a student team assigned to do a management class project for Kim. Her question for the team is: “How can I best deal with my strategic management challenges in this situation?” How will you reply?