Worldatwork CECP Exam - Topic 4 Question 105 Discussion

Question

The Alpha Company was once a strong company that commanded a high percentage of the market it operated in. In recent years, Alpha has been losing market share to competitors in its primary line of business and has been unable to find a competitive strategy to grow and return to profitability. Given its market position, how is Alpha most likely finding the monetary resources to continue operations?

Toi · Accepted Answer

A) By using cash from other segments of the business

Toi · Answer

B) By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

Toi · Answer

C) By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

Toi · Answer

D) By identifying and duplicating the strategy used by its main competitor.