When Nestle tried to enter the frozen pizza market to attempt to take market share away from home delivery pizzerias, it learned it couldn't sell its frozen pizzas at the same price customers would pay for delivery. Customers just didn't see a benefit. This is an example of Select one: a. Better mousetrap fallacy b. Large-market fallacy c. No sustainable business model fallacy d. Me-too trap

Question

Dalia Pennington

Business

25 July, 21:24

When Nestle tried to enter the frozen pizza market to attempt to take market share away from home delivery pizzerias, it learned it couldn't sell its frozen pizzas at the same price customers would pay for delivery. Customers just didn't see a benefit. This is an example of Select one: a. Better mousetrap fallacy b. Large-market fallacy c. No sustainable business model fallacy d. Me-too trap

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Kyan · Answer 1

d. Me-too trap

Explanation:

Me too strategy is when a company decides to produce a similar product with a competitor already in the market to stop the competition from maximising market share.

The me too strategy is counter-productive as it is difficult to get market share from a competitor that the consumer is already familiar with.

A better strategy is product differentiation to give consumers something new.

Nestle tried to enter thearket but failed as customers were not willing to pay the same price for their pizzas as the delivered ones they were used to.