Exercise equipment company produces a range of exercise equipment. All the equipment is manufactured locally, and currently the business promotes its equipment as a premium brand. Sales growth is broadly in line with inflation and profitability is marginal. Therefore, in an effort to boost sales, it has decided to compete on price. It is now attempting to match the low-cost businesses that import from overseas, while still emphasizing its differentiators - that is a premium brand made locally. What impact will this strategy change have on credit risk?

Answer rating: 100% (QA)

Shifting to a pricecompetitive strategy while maintaining the emphasis on being a premium brand made ... View the full answer