Risk normally associated with bottom of pyramid strategies

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Reference no: EM131643635

1. Which of the following is not a risk normally associated with Bottom of the Pyramid strategies?

a. A low-end version of a brand may detract from the overall brand attractiveness.

b. The new low-cost products they develop may cannibalize the sales of their core products.

c. Entrenched competitors can impact the ability of the new firm to enter the market successfully.

d. New products may be perceived as exploiting the privileged customer with substandard products.

2. Which of the following is a disadvantage of a transnational strategy?

a. less ability to realize cost savings through scale economies

b. limited ability to adapt to local markets

c. unique managerial challenges in fostering knowledge transfer

d. single locations may lead to higher tariffs and transportation costs

Reference no: EM131643635

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