APICS CPIM-8.0 Exam - Topic 2 Question 2 Discussion

Actual exam question for APICS's CPIM-8.0 exam

Question #: 2
Topic #: 2

Which of the following strategies is most appropriate for a business unit with a low relative market share in a high-growth market?

AUsing excess cash generated to fund other business units

BInvesting in the acquisition of competitors

CInvesting in projects to maintain market share

DDesigning product improvements to protect market share

Show Suggested Answer

Suggested Answer: C

For a business unit with a low relative market share in a high-growth market, the most appropriate strategy is investing in projects to maintain market share. In a high-growth market, opportunities for expanding or solidifying market share are significant. A business unit with a low market share can benefit from investing in projects that enhance its competitive position, such as improving operational efficiency, innovation in products or services, and marketing efforts. These investments aim to strengthen the unit's market presence and capitalize on the growth potential of the market. This approach is more suitable than using excess cash for other units, acquiring competitors, or just focusing on product improvements, as it directly addresses the need to build a stronger market position in a growing market.

by Rebbeca at Mar 07, 2025, 04:45 AM

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Leota

3 months ago

Really? Investing in competitors? Sounds sketchy.

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Thea

3 months ago

Surprised no one mentioned D, product improvements are key!

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Evelynn

3 months ago

A seems risky, not sure about that one.

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Weldon

4 months ago

I think C makes more sense for stability.

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Salena

4 months ago

Definitely B, gotta acquire to grow!

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Yvonne

4 months ago

I lean towards option D, but I wonder if product improvements are enough to really protect market share in such a competitive environment.

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Magdalene

4 months ago

I recall that maintaining market share is important, but in a high-growth market, maybe we should focus on growth instead?

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Kelvin

4 months ago

I'm not entirely sure, but I feel like option B could be risky if the market share is low. Acquiring competitors might not guarantee success.

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Gregoria

5 months ago

I think this question is similar to one we practiced about market share strategies. I remember that in high-growth markets, investing might be key.

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Staci

5 months ago

I'm a little confused by the options here. Using excess cash to fund other units doesn't seem like the right approach for this situation. I'll need to re-read the question and think it through carefully.

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Lettie

5 months ago

Okay, let me break this down. A low market share in a high-growth market means the business needs to focus on gaining share, not just maintaining it. I think investing in projects or product improvements to boost market share is the way to go.

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Meaghan

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to think through the different strategies and how they apply to a low market share, high-growth scenario.

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Lindsey

5 months ago

This seems like a straightforward question, I'm pretty confident I can figure this out.

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Tracie

11 months ago

Option E: Invest in a time machine and go back to when your business unit had a higher market share. Problem solved!

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Yuki

11 months ago

Option A? Seriously? Using excess cash to fund other business units? That's like trying to put out a fire with gasoline!

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Brandon

11 months ago

I don't know, option D seems pretty good to me. Protecting your market share with product improvements is a smart move.

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Lyda

11 months ago

Option B sounds like a good idea. Acquiring competitors could help you quickly gain market share in a high-growth market.

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Gary

10 months ago

Using excess cash generated to fund other business units might not be the best choice for a low relative market share in a high-growth market.

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Hannah

10 months ago

Yes, that's true. We need to balance between acquiring competitors and maintaining our current market share.

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Gertude

10 months ago

But wouldn't investing in projects to maintain market share also be important in this situation?

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Chun

10 months ago

Investing in projects to maintain market share could also be a good option to consider.

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Glory

11 months ago

I agree, acquiring competitors could be a strategic move to increase market share.

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Eleonora

11 months ago

I agree, acquiring competitors can help us grow faster in a high-growth market.

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Terrilyn

11 months ago

I think option C is the most appropriate. Investing in projects to maintain market share seems like the logical choice when you have low market share in a high-growth market.

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