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Develop distinctive capabilities, the incentive problem

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Reference no: EM133571906

Question: The main reason Costco decided to build a slaughter house was to keep the price of its rotisseries chicken low. The rotisserie chicken is a loss leader. Nevertheless in building and operating its own slaughter house Costco may struggle to keep its losses less than what they would have been had Costco continued to buy chickens from companies such as Tyson Foods. This is an example of: flexibility, managing strategically different businesses, develop distinctive capabilities, the incentive problem, competitive effects, differences in optimal scale in different stages of production, compounding risk

Reference no: EM133571906

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