$1$

$5$

points

Exerclse $1-37($Statlc$)$ Strategy; Food Producer $[$LO $1-4]$

The Yee$-$Haw Pickle Company in Park City, Utah, has grown in four years to supply $600$ retailers nationally. The products include pickles and pickled green beans. Yee$-$Haw's products are unique for their unusual ingredients, such as wildflower honey used in some of their products. The owners of Yee$-$Haw are considering how to make the company grow. A large discount store chain with $500$ stores wants to add the Yee$-$Haw product.

Requlred:

What type of strategy, cost leadership or differentiation, should Yee$-$Haw use?

The strategy is differentiation due to the use of unique ingredients

The strategy is differentiation due to the considering of selling through a large discount chain.

The strategy is leadership due to the desire to grow sales and look for new market opportunities.

The strategy is leadership due to the potential to sell to a large discount chain.

$2$ Should the owners accept the offer of the large discount chain?

No$,$ the sale of its differentiated, premium product in discount stores would undermine the differentiated competitive advantage that the company now

Yes, the sale of its products through a large discount change will increase volume and therefore profits will increase.

What are the key factors you considered in answering requirements $1$ and $2?($You moy select more than one answer. Single cllek the box with the question mark to produce a check mark for a correct answer and double cllek the box with the question mark to empty the box for a wrong answer.$)$

$(1)$ Having the company associated wth a discounter would likely damage thelr premlum brand The strategy of differentiation due to the use of unique ingredients is the basis of its brand Having the company assoclated with a discounter would likely enhance thelr premium brand.