Management:

Use the following transcript from the interview from the CEO of Fashletics to answer the following questions:

Video Transcript:

>> Interviewer: What is your number one concern? So you want to hit this mark, this huge valuation mark. What needs to happen for that to be achieved?

>> CEO: Well I think more than ever, we're very much in control of our destiny today. We've created this market back in 1996, and we continue to lead this market in a very unique position at the intersection of function and fashion. So we

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this incredible product, always solving problems for the athletes. And we live in a beautiful way, at the intersection of athleticism and mindfulness. And we know that more and more globally, people want to live an active, mindful lifestyle. I mean people don't think anymore about work-life balance. I mean they really want to design a life that they love. And that's what we do with our employees, that's what we do with our educators.

>> Interviewer: Well, concern isn't actually-the industry's growing. Right? And with it, it's shifted in the last five or six years, people want a more healthy lifestyle, but it also means having increased competition. You have added that center in your market, you have Nike, how do you see them? Who's your biggest competitor?

>> CEO: I think it's-on one hand, you've got the athletic brand, on the other hand you've got the fashion brand. And again, I would argue that we're very unique in our positioning. One, because we marry function and fashion really well. But on top of that, we've got a vertical model. So our vertical model allows us-gives us a margin to work towards that really allows us to put tremendous innovation in the product. So when you think about the athletic brands, they mostly have a wholesale business. Very different from

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and when you think about fashion brands, they really don't work with the athletes the way we work the athletes, to solve problems for the athletes, working at the

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level to deliver up the most amazing fabrics in the world. And so that puts us in a really unique position, because you see people being more and more intentional with their personal decisions. And I really think

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best in the world, that human connection and product. So when you go to our stores, when you see that energy, that vertical model allows us a

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that makes us a very profitable, very successful business, but also allows us to put a lot of value in the product from a

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standpoint.

Questions:

Fashletics value-creating strategy is best described by which of the following statements?

a.Following a wholesale model allows Fashletics to minimize its costs.

b.Following a diversification model allows Fashletics to offer numerous products to athletes.

c.Following a vertical model gives Fashletics a margin structure that is beneficial.

d.Fashletics has no specified value-creating strategy.

From the CEO's comments, which of the following would be closest to Fashletics' mission?

a.For the serious athlete, function over fashion.

b.Focus on the fashion of athletics.

c.Provide people with the components to live a longer, healthier, and more fun life.

d.If you have a body, you are an athlete, and we have the clothes for you.

The "intersection of function and fashion" provides which of the following to Fashletics?

a.Resources

b.Competitive advantage

c.Risk

d.Hypercompetition