Reference no: EM132670993

1. Stuff Mart was founded in 1957 in North Carolina. Stuff Mart was not an overnight success and struggled during its first 10 years in business. Nothing management did seemed to work. Finally, manager Tim Kenner poured over six months of receipts and determined that if Stuff Mart lowered its prices on all 3,000 items and increased sales by 50 percent, the company might survive. The strategy paid off, and the company was reborn as a resolute cost cutter. The slogan LFPIA (Lowest Food Prices in America) soon appeared on bumper stickers. Stuff Mart began to achieve substantial cost and pricing advantage over rival supermarket chains by revamping portions of the grocery retailing value chain and by out managing rivals in efficiently performing various value chain activities. Cost advantages stemmed from a series of initiatives and practices. These initiatives gave Stuff Mart an approximate 22 percent cost advantage over other leading supermarket chains. Stuff Mart has been able to underprice its rivals and become the world's leading supermarket retailer. Answer the following two (2) questions based on this scenario.

a. What business competitive position is Stuff Mart using?

b. Support you answer. Be specific.