• Question 3

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Given the following data from a recent Comparative Competitive Efforts page in the CIR:

AC CAMERA SEGMENT		Your Company	Industry Average	Your Company vs. Ind. Avg.
Price (Average Wholesale Price $ per unit)		$290	$250	+16.0%
P/Q Rating (1 to 10 stars)		6.5	5.1	+27.5%
Brand Reputation		72	75	-4.0
Number of Models		3	3.1	-3.2%
Retail Outlets	Multi-Store Chains	25	35	-28.6%
	Online Retailers	53	68	-22.1%
	Local Retailers	2,189	2,897	-24.4%
Retailer Support ($ per unit)		7.32	6.92	+5.8%
Advertising Budget ($000s)		1,600	1,929	-17.1%
Website Displays ($000s)		1,200	1,764	-32.0%
Sales Promotions	Weeks	2	4.7	-57.4%
	Discount	20.0%	15.9%	+25.8%
Warranty Period (days)		120	69	+73.9%
Demand for ACC Units (000s)		218.5	279.0	-21.7%
Gained /Lost (due to stockouts)		+1.1	-0.1
AC Camera Units Sold (000s)		219.6	278.9	-21.3%
Market Share		11.2%	14.3%	-3.1 pts
Special AC Camera Contracts
Discount Offer		30.0%	Avg. Discount = 12.4%
Value Index		81	Avg. Value Index = 71
Special Contract Units Sold (000s)		21.9	Total Units = 58.5k

Based on the above data for your company, which of the following statements is false?

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Your companys percentage competitive advantages and disadvantages on the 10 competitive factors affecting AC camera sales and market share resulted in a net overall competitive disadvantage of a size sufficient to produce a market share that was 3.1 percentage points below the industry average.

Your company's brand reputation was a slight 4.0% competitive disadvantage.

Your companys sales volume and market share in the AC camera segment were positively impacted by your companys P/Q rating, sales promotion discount, and warranty period.

Your companys Discount Offer and Value Index were very competitive and accounted for why your company received special contacts to supply multi-chain retailers with 21,900 AC cameras.

Your companys competitive disadvantages in the AC camera segment had equally-sized negative impacts in causing your companys market share to be 3.1 percentage points below the regional average.

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