PetSmart and PetCo are two major competitors offering pet supplies and pet food. Given the location decisions of PetSmart and PetCo in this city, you conclude that: a. PetSmart focuses on raising its quantity sold rather than raising its profit margin on each unit. b. PetSmart and Petco engage in intense price undercutting. c. PetSmart and PetCo differentiate themselves by location. d. PetCo chose its location primarily using demand side considerations.
PetSmart and PetCo are two major competitors offering pet supplies and pet food. Given the location decisions of PetSmart and PetCo in this city, you conclude that: a. PetSmart focuses on raising its quantity sold rather than raising its profit margin on each unit. b. PetSmart and Petco engage in intense price undercutting. c. PetSmart and PetCo differentiate themselves by location. d. PetCo chose its location primarily using demand side considerations.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Question
PetSmart and PetCo are two major competitors offering pet supplies and pet food. Given the location decisions of PetSmart and PetCo in this city, you conclude that:
a.
PetSmart focuses on raising its quantity sold rather than raising its profit margin on each unit.
b.
PetSmart and Petco engage in intense price undercutting.
c.
PetSmart and PetCo differentiate themselves by location.
d.
PetCo chose its location primarily using demand side considerations.
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