Card 196 / 204: You have created a new soft drink product. You recognize that Coke and Pepsi own a majority of the marketplace, and making inroads into this product category will be challenging. Your product has received good feedback from consumers, and you believe your marketing strategy is strong. Your company has benefited from several investors who believe in your product. Because your market share is likely to be low, which of the following factors may inhibit your ability to reach high levels of profitability?
A)
Inability to tap into effective distribution channels
B)
Advertising that may not be convincing to consumers
C)
Economies of scale
D)
Research that indicates that high levels of profitability are easily attainable
E)
None of the above
Answer:
C) Economies of scale
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