Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should

Question

Carla

Business

3 October, 15:58

Funsters, Inc., the largest toy company in the country, sells its most popular doll for $15. It has just learned that its leading competitor, Toysorama, is mass-producing an excellent copy and plans to flood the market with their $5 doll in six weeks. Funsters should

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Cherish Ho · Answer 1

Funsters should increase the supply of its doll now before the other doll hits the market.

Explanation:

The success of any organisation depends on how well the company evaluates about its competitors and their plans. It must predict what the competitors will be doing in future and take actions accordingly so that that will not get affected by the move taken by their competitors. They must plan their productions accordingly so that there will not be any loss to them.

In the example given, the company Funsters, Inc sells its toys at $15. But it knows that the leading competitor decides to sell toys at Lower rate of $5 in next six weeks. Thus Funsters. Inc should increase the supply of its doll now before the other doll hits the market.