Question: Using only the evidence provided below and the guidance from class regarding strong, logical conclusions, select the most accurate conclusion (answer a-e) that can be
Using only the evidence provided below and the guidance from class regarding strong, logical conclusions, select the most accurate conclusion (answer a-e) that can be drawn from the information below. (Please note that the data provided is fictional.) Competitor A owns and operates 2000 US-based bricks and mortar drug stores of about 3000 square feet each. The stores generate a large proportion of their revenue from prescription medications, but also sell other health, beauty, and convenience items to consumers. Competitor B owns and operates a comparable number of drug stores of about the same size. Its stores generate revenue in the same manner as Competitor A, but Competitor B also owns and operates an online drug store from which consumers can order their prescriptions and have them delivered to their homes, bypassing the bricks and mortar stores entirely. Competitor C owns only an online prescription medication business and no bricks and mortar stores. Competitors A and B price some medications and most other goods sold through the bricks and mortar stores approximately 10-30% higher than those online. Over the past 2 years, internet sales of all goods and services have been increasing at a rate of 25% per annum. The rate of growth of internet-based sales is expected to continue to grow in the future, albeit at a slower rate. Online prescription medication sales have grown at a slightly lower rate of 10% per annum over the past 2 years. Which of the following statements draws the strongest, linear logical conclusion from the information provided? Group of answer choices Few, if any, bricks and mortar retailers will be able to survive in the future, given the growth in online sales and especially given the presence and growth of Amazon.com and its first mover advantage. Given the higher prices charged in their bricks and mortar stores, Competitors A and B are targeting affluent consumers in those stores. It is highly likely that the Coronavirus pandemic drove the increase in online medication purchases. Competitor A has no choice but to start-up or buy online prescription operations. Otherwise, it will go out of business. Competitors B and C are better positioned for online growth, putting Competitor A at risk for losing revenues and profits to them, as well as, other online competitors.
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