Exercise 1 (Strategy, Competitive Advantage) In the mid-1970s a large retailer of auto parts, Best Parts, Inc. (BPI), was looking for ways to invest an accumulation of excess cash. BPI's success was built on a carefully developed inventory control system that guaranteed a customer would be able to purchase a desired part 99 percent of the time on demand, and the remaining 1 percent of the time within one business day. The speed and quality of service set BPI apart from other parts dealers, and the business continued to grow. On the advice of close friends and consultants, the owner and CEO of BPI decided to invest a significant portion of the excess cash in a small chain of gift and craft stores. The stores would be placed in shopping malls. Required: Determine the competitive advantage (cost leadership, or differentiation) of BPI in the auto-parts business. Asses how this competitive advantage would or would not facilitate success in the new venture.

Exercise 1 (Strategy, Competitive Advantage) In the mid-1970s a large retailer of auto parts, Best Parts, Inc. (BPI), was looking for ways to invest an accumulation of excess cash. BPI's success was built on a carefully developed inventory control system that guaranteed a customer would be able to purchase a desired part 99 percent of the time on demand, and the remaining 1 percent of the time within one business day. The speed and quality of service set BPI apart from other parts dealers, and the business continued to grow. On the advice of close friends and consultants, the owner and CEO of BPI decided to invest a significant portion of the excess cash in a small chain of gift and craft stores. The stores would be placed in shopping malls. Required: Determine the competitive advantage (cost leadership, or differentiation) of BPI in the auto-parts business. Asses how this competitive advantage would or would not facilitate success in the new venture.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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